Mission Capital Lands Loan for Manhattan Office

Tower

October 28, 2015 By Barbra Murray

An investment group led by fashion designer Elie Tahari was in need of financing for a Manhattan office and retail property, and Mission Capital Advisors found it. Mission Capital has orchestrated $70 million in financing for 88
University Place, the 94,000-square-foot
Midtown South property acquired by the borrowers in a $70 million off-market deal in July.
Mission Capital secured the floating-rate loan through Mack Real Estate Credit Strategies. There was a lot for a lender to love, starting with location; the property sits in the heart of Greenwich Village. And then there’s the tenancy. Shared workspace provider WeWork is scheduled to set up shop on 8 of the 10 floors of the 109-year-old corner building’s commercial
loft space, with an eye toward ultimately occupying the remaining two floors.
“The Sponsor’s sophisticated real estate acumen was demonstrated in tying the asset up in an off-market transaction while concurrently forward-leasing the asset directly to WeWork. This unique combination of property, locale, and value-add afforded us the ability to secure very competitive capital and terms from a seasoned capital provider in Mack real estate,” Jonathan More, managing director at Mission Capital, said in a prepared statement.
Mission Capital has been keeping itself busy–so busy, that the capital markets solutions firm is expanding its presence in California. Mission Capital will establish locations in Los Angeles and San Francisco, taking space in offices provided by none other than WeWork.

Mission Capital Secures $70M Loan for

Manhattan Office

October 27, 2015
By Jaime Lackey

An investment group that recently purchased 88 University Place in Manhattan for $75 million has secured $70 million in financing for the property.

NEW YORK CITY — Mission Capital Advisors has arranged $70 million in financing for 88 University Place, a 94,000-square-foot building in the heart of Midtown South/Greenwich Village. Mack Real Estate Credit Strategies provided the floating-rate loan on behalf of the sponsor, an investment group led by fashion designer Elie Tahari, which recently purchased the property in an off-market transaction for approximately $75 million. The property, which was constructed in 1906, consists of 11 stories of commercial loft space and ground-floor retail. A forward lease is in place with WeWork, the real estate co-sharing office space company. WeWork will occupy eight of the 10 floors, with the company
expected to eventually occupy all 10 floors. Jonathan More, Ari Hirt and Jamie Matheny of the Mission Capital Debt & Equity Finance Group secured the loan. Ownership plans to invest significantly in capital improvements, including new lobby entranceways, new elevator cabs and mechanical upgrades, common area improvements, and HVAC upgrades.

FUTURE HOME OF WEWORK UNION

SQUARE NABS $70M LOAN

October 26, 2015 By Scott Klocksin

The future home of a WeWork location in Union Square has gotten a
$70M infusion of cash. Mack Real Estate Credit Strategies' Richard Mack and Peter Sotoloff are providing the loan to an investment group led by the fashion designer Elie Tahari, which bought the building at 88
University Pl from Himmel + Meringoff back in July.
Mission Capital Advisors brokered the loan, which the ownership will
sink into improvements like new lobby entranceways, new elevator cabs and HVAC upgrades. WeWork will initially take the lower eight floors of the building, with plans to eventually occupy all 94k SF.

Mack Real Estate Lends $70Mln Against

Greenwich Village Office

October 26, 2015
Mack Real Estate Credit Strategies has provided $70 million of floating-rate financing against 88 University Place, a 94,000-square-foot office building in the Greenwich Village area of Manhattan.
The financing, which was arranged by Mission Capital Advisors, helped fund
the property's purchase, for $70 million, by fashion designer Elie Tahari, and will be used to fund a number of capital improvements, including upgrades to its heating, ventilation and air-conditioning system, elevators, lobby and other common areas.
According to an earlier report in The Real Deal, Tahari had been involved in a legal battle with Normandy Real Estate Partners, which previously had struck a deal to buy the 11-story building, which resulted in the delay in the financing. The L-shaped property, constructed in 1906, has frontage on both 11th and 12th streets.
WeWork, which leases furnished office space, has agreed to occupy eight of the buildings 10 floors of office space.
"The sponsor's sophisticated real estate acumen was demonstrated in tying the asset up in an off-market transaction while concurrently forward-leasing the asset directly to WeWork," explained Jonathan More, managing director of Mission Capital.
Separately, Mission Capital, which has offices in six cities, will be leasing space at WeWork locations in San Francisco and Los Angeles, the latter being an expansion of its Newport Beach, Calif., office. It expects to lease additional space in other cities as it expands.
Mack Real Estate is led by the father-son team of William and Richard J. Mack, who two years ago sold their stake in Area Property Partners. Last year, Peter Sotoloff, the former head of U.S. originations at Blackstone Group, joined as chief investment officer of the Mack Real Estate lending business.