HSR Corp. Lands $58M for Manhattan Office Building

503-511 Broadway. Image courtesy of CommercialEdge

HSR Corp. has obtained $58 million for the refinancing of a 140,000-square-foot Class A office property in New York City’s Manhattan. Morgan Stanley provided the five-year, fixed-rate loan on a full-term interest-only basis. Black Bear Capital Partners, a subsidiary of Black Bear Asset Management, arranged the financing.

HSR has owned the property, that came online over a century ago, since 1982. The building is fully leased to tenants that include AWAY Travel, which committed to 56,000 square feet of space in 2018, PacSun and Bath & Body Works. The majority of the contracts extend through 2027, while the property has a weighted average lease term of 4.5 years.

READ ALSO: Leasing Activity Animates Slow Manhattan Office Market

Situated in SoHo at 503-511 Broadway, between Spring and Broome streets, the building comprises 111,164 square feet of office space and 10,000 square feet of ground-floor retail, with the remainder of the space dedicated to storage. The property features 125 feet of street frontage along both Broadway and Mercer Street and flexible 25,000-square-foot floorplates.

The building also includes a retail condominium component that is not part of the collateral. Fashion company and Zara parent Inditex acquired it in 2015, in a $280 million deal.

Black Bear COO & Managing Partner Bryan Manz, Senior Managing Partner Emil DePasquale and Associate George Pektor worked on the deal. Manz said, in prepared remarks, the deal stands out amid a volatile market where obtaining financing has been difficult.

Manhattan’s office market continues to struggle with redefining itself in the post COVID-19 era. The borough’s vacancy rate clocked in at 17.0 percent in May, according to a recent CommercialEdge report, up 20 basis points over the month.