Midtown Manhattan Tower Scores $148M Loan

1410 Broadway. Image courtesy of L.H. Chamey Associates

L.H. Charney Associates, owner of the office tower at 1410 Broadway in Midtown Manhattan, has refinanced the property, courtesy of PCCP LLC. The real estate finance and investment management firm provided L.H. Charney with a $148 million loan for the recently renovated, approximately 387,300-square-foot asset.

Despite challenges in the Manhattan office market, thanks in no small part to the global health crisis, PCCP was highly attracted by the opportunity. “There will undoubtedly be winners and losers as the New York City office market recovers from COVID-19, but we are long-term believers in the demand for well-located, high-quality office space in Manhattan,” Brian Haber, vice president with PCCP LLC, told Commercial Property Executive. Haber also pointed to the strength of the sponsorship as an appealing factor.

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Sited in the highly transit-oriented Penn Plaza/Garment District submarket, 1410 Broadway, also once known as the Bricken Casino Building, first opened its doors in 1930 as a design project of celebrated architect Ely Jacques Kahn. L.H. Charney has owned the 34-story high-rise since 1981 and has maintained the property’s luster over the last few decades, most recently with a seven-year, $14.2 million renovation that was partially spearheaded by TPG Architecture.

In addition to repaying the balance of the $130 million mortgage obtained through Metropolitan Life Insurance Co. in 2016, L.H. Charney plans to utilize the proceeds from the PCCP refinancing to fund capital improvements at 1410 Broadway and costs to re-lease existing vacancy at the 78 percent occupied building. Traditional home to fashion and professional services companies, 1410 Broadway will court a broad range of tenants once L.H Charney executes its lease-up plan, which includes a pre-built office suites program.

Eschewing the wait-and-see approach

With the closing of the L.H. Charney loan, PCCP has completed its fifth financing deal in New York City within the last nine months. The firm has been highly active across the country throughout the pandemic.

“With many lenders still on the sidelines, we continue to see compelling opportunities to finance top-tier borrowers on high quality assets at attractive yields,” Haber said.

Those who are actively lending are keen on the current investor favorite, the industrial sector; however, PCCP is diverse in its activities, generating loans for industrial, office, multifamily and mixed-use property types. Recent PCCP transactions include the origination of a $65 million loan for the refinancing of an approximately 172,600-square-foot office building in Dallas. Additionally, the firm came through with a $122.7 million refinancing package for American Life Inc.’s 717,700-square-foot office and hotel asset at 255 S. King St. in Seattle.