1 | MARCH 11, 2016

Charleston, S.C.-based real estate owner Greystar nabbed a total of $184 million from New York Community Bank and

Capital One across two loans to fund its recent apartment

building purchases in New York City, Commercial Observer Finance has learned.

NYCB provided Greystar with $115 million to finance its buy of The Chelsea, an 18-story apartment complex at 160 West 24th Street at the corner of Seventh Avenue and a connected three-story retail building

at 167 West 23rd Street in Manhattan. The firm acquired the two attached Chelsea buildings for $211.3 million from Chicago-based LaSalle Investment Management

and both the sale and financing closed on Feb. 25, according to city records made public earlier this month.

The mortgage carries a five-year term with two one-year extension options, Greystar Chief Executive

Officer Bob Faith told COF. “We have borrowed from [NYCB] before

Brooklyn-based Two Trees Management Company snagged a loan extension on a $195 million commercial mortgage-backed

securities note backed b y J. P. M o r g a n International Plaza I

& II, a 756,851-square-foot office complex in the Farmers Branch suburb of Dallas, Commercial Observer Finance has learned.

Robert Verrone ’s Iron Hound Management Company, which specializes in loan workouts and debt originations, ne-gotiated a two-year extension on the CMBS deal, which was set to mature this June. If the property’s sole tenant, J.P. Morgan

Iron Hound...continued on page 3Greystar...continued on page 5

Iron Hound Negotiates Extension on $195M CMBS Loan for Two Trees Dallas Office Plaza

The LEAD

In This Issue 3 Bank of China Lends $50M Against Moinian’s W Hotel and Residences

5 Hunt Refinances Ohio Mixed- Use Property With $40M Freddie Mac Loan

7 Colliers Tapped to Raise $50M for Suburban Boston Hotel Development

“We’re working to integrate Massey Knakal legacy brokers

with the existing Cushman & Wakefield equity, debt and

structured finance platform.”—Garret Thelander

From Q&A on page 10

The Insider’s Weekly Guide to the Commercial Mortgage Industry

FINANCE WEEKLY

EXCLUSIVE

EXCLUSIVE

Capital One, NYCB Lend $184M for Greystar’s NYC Apartment Building Buys

2 | MARCH 11, 2016

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3 | MARCH 11, 2016

Bank of China Lends $50M Against Moinian’s FiDi W Hotel and Residences

The Moinian Group landed a $50.7 million mortgage from the Bank of China on the W New York - Downtown Hotel and Residences at 123 Washington Street in Lower Manhattan, according to records filed with the New York City Department of Finance.

The Bank of China financing, which closed in February and was made pub-lic on March 2, is part of the re-en-hancement of the $50 million in 2007 liberty bonds that the New York City Industrial Development Agency orig-inally issued for the development. The 400,000-square-foot mixed-use project was completed in 2010.

The 58-story tower, which is locat-ed between Albany and Carlisle Streets just south of the World Trade Center complex, contains a 217-key W Hotel as well as 223 condominium units—159 of which are unfurnished and 64 of which

are furnished. The mixed-use site also includes a restaurant, a bar and a fitness center.

Current listings for a condo at Moinian’s building range from $1.3 mil-lion for a 606-square-foot one-bedroom to $10.3 million for a 2,052-square-foot four-bedroom condo, according to StreetEasy.

The Moinian Group has been busy financing its assets. Late last month, Commercial Observer Finance report-ed that the Moinian Group and Thor Equities took a $160 million loan from AIG Global Real Estate to refi-nance a 24-story office building at 245 Fifth Avenue in Manhattan’s NoMad neighborhood.

A representative for Bank of China did not respond to requests for comment. A representative for Moinian declined to comment.—Danielle Balbi

123 Washington Street.

Chase, renews its lease, Two Trees will have the option to extend the loan for another three years, Mr. Verrone said. The banking giant’s lease is slated to expire in February 2018, according to data from Trepp.

RBS Greenwich Capital, which be-came RBS Securities in 2009, originat-ed the mortgage in March 2006 and it currently comprises about 12 percent of the remaining collateral in the Goldman Sachs-sponsored conduit GCCFC 2006-GG7, making it the second-largest note se-curitized in the pool.

The proceeds of the loan were used to fund Two Trees’ $263 million purchase of the office plaza, according to the original loan prospectus. The office site is located at 14201 and 14221 Dallas Parkway and con-tains one 13-story and one 15-story building, respectively.

The $225 million loan was eventually split into a $195 million A note and a $31 million B note. The A note has since amortized to its current balance of $165 million. The debt service coverage ratios on the A note and B note are 1.33x and 1.10x, respectively, accord-ing to Talmage.

In November 2015, Two Trees indicated to the servicer that it would not be able to repay

J.P. Morgan International Plaza in Dallas, Texas.

Iron Hound...continued from page 1

the debt at maturity in June. The property’s full 2015 financials have not been provided and payments on the loan remain current, according to Trepp.

Mr. Verrone told COF that as the CMBS market continues to suffer, borrowers

are turning to his workout business for assistance.

“We get deals closed,” he said. A representative for Two Trees was

not immediately available for comment. —Danielle Balbi

4 | MARCH 11, 2016

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5 | MARCH 11, 2016

Hunt Refinances Ohio Mixed-Use Property With $40M Freddie Mac LoanHunt Mortgage Group funded a $40

million Freddie Mac-secured loan to two local investors for Highpoint on Columbus

Commons, a two-build-ing mixed-use property at 190 South High Street

in Columbus, Ohio, Commercial Observer Finance has learned.

The borrowers, Columbus developers Bob Weiler’s Robert Weiler Co. and Donald Kelley’s Donald W. Kelly & Associates, are using the 10-year financing from Hunt to

replace the original construction loan used for the project’s development.

Messrs. Weiler and Kelley’s companies co-developed the complex with Atlanta-based Carter & Associates in 2012 and in November 2015 bought out Carter’s stake in the property.

“The Weiler and Kelley families are well-known real estate investors in Columbus and Hunt Mortgage Group is proud to have them as clients,” Keith Morris, a vice presi-dent at Hunt, said in prepared remarks pro-vided to COF. “The property has an excellent

and unique location adjacent to Columbus Commons, which is an amazing amenity for the tenants and downtown residents.”

Highpoint contains 301 residential units and 23,302 square feet of retail space. Amenities include underground parking, a pool, a barbeque area and a gym. Monthly rents in the residential building range from $940 for a 517-square-foot studio to $3,000 for a 2,033-square-foot two-bedroom.

Messrs. Weiler and Kelley could not be reached for comment.—Danielle Balbi  

EXCLUSIVE

Highpoint on Columbus Commons in Columbus, Ohio.

and they’re a great lender,” Mr. Faith said. “They have been very good to work with on acquisitions that we’ve done in the Greater New York area before, and we’re very excit-ed about this acquisition. It’s a great location and right in the heart of Chelsea.”

Meridian Capital Group’s Abe Hirsch and Zev Karpel negotiated the financing on behalf of the borrower.

The Chelsea, which last traded hands for $117.4 million in May 2006, contains 204

studios and one- and two-bedroom apart-ments. The monthly asking rents range from $3,430 for a 523-square-foot studio to $7,291 for a 1,166-square-foot two-bedroom, according to the building’s website.

The company plans on upgrading the building’s lobby, hallways and other common areas, as well as the kitchens and floors in the apartments, Mr. Faith said.

In a separate transaction, Greystar pur-chased two residential rental developments in Williamsburg, Brooklyn, from Adam America Real Estate for $125 million, for

which Capital One provided a $68.8 million acquisition loan. The mortgage also carries a five-year term and two one-year extension options.

The two properties, at 247 North 7th Street and 248 North 8th Street, both between Roebling and Havemeyer Streets, were just completed and are currently being leased up, Mr. Faith said.

A spokesman for NYCB declined to com-ment. A representative for Capital One did not respond to requests for comment. —Danielle Balbi

Greystar...continued from page 1

6 | MARCH 11, 2016

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7 | MARCH 11, 2016

Colliers International was exclusively retained to raise $50 million in debt and eq-uity to fund a Hilton-branded hotel in the

Woburn suburb of Boston, Mass., sources have in-f o r m e d C o m m e r c i a l

Observer Finance. M a s s a c h u s e t t s - b a s e d M a d i s o n

Properties is working with a Colliers team led by Thomas Welch of the brokerage’s Boston office and Richard Lillis of the firm’s Fort Lauderdale, Fla. office, to raise the

construction financing for the 235-key hotel at 369 Washington Street, at the intersec-tion of I-93 and I-95.

Madison Properties, which has primari-ly developed retail properties in the Greater Boston area, is developing a dual-branded Hilton hotel, with a 110-room Homewood Suites and 125-unit Hampton Inn.

“Madison has done a masterful job trans-forming the site into a shovel-ready proj-ect with leading brands and cutting-edge, synergystic dual-brand plans tailor made

to fill a gap in this highly visible location and red-hot submarket,” Mr. Welch said in prepared remarks. “While we will pursue joint venture development equity, we rec-ognize that certain sources may prefer to step in to develop the asset themselves or simply contract to purchase the project at completion.”

Mr. Welch told COF that construction should begin by the summer of 2016, and the doors of the hotel are slated to open in January 2018.—D.B.

Colliers Tapped to Raise $50M for Suburban Boston Hotel Development

A rendering of the Homewood Suites and Hampton Inn at 369 Washington Street in Woburn, Mass.

EXCLUSIVE

COMMERCIALOBSERVER.COM

8 | MARCH 11, 2016

POWERING YOUR PROSPERITYTim KeachTDK ConstructionAviation EnthusiastWalker & Dunlop borrower since 2010

9 | MARCH 11, 2016

“After an incredibly light volume of commercial mortgage-backed securities in issuance in January, February brought forth a more ‘normal’ total of debt issued,” said Sean Barrie, an analyst with Trepp. “The largest loan issued in February was the $778.5 million chunk of debt backing 225 Liberty Street in Lower Manhattan. The 2.4-million-square-foot office is the sole piece of collateral behind the single-borrower securitization LBTY 2016-225L. Penn Square Mall in Oklahoma City received the second-largest issue of the month, as the 1.1-million-square-foot retail hub also backs a single-asset deal. To the surprise of very few, the New York City metropolitan statistical area is the highest represented market for February issuance. A little over $1.5 billion of CMBS debt was assigned to New York City-area properties, spread across 45 loans.”

Source:

The Takeaway

Top 10 CMBS Loans Originated in February

24 7|COMMERCIALOBSERVER.COM

Securitized Loan Balance

Property Name Deal Name City State MSA Property Type Code

Model Maturity Date

DSCR Current LTV

Issuer

$778,500,000 225 Liberty Street

LBTY 2016-225L New York N.Y. New York- Newark-Jersey City, N.Y.-N.J.-Penn.

Office Feb. 10, 2026 1.73 64.29 Citigroup

$173,400,000 Penn Square Mall MSC 2016-PSQ Oklahoma City

Okla. Oklahoma City, Okla. Retail Jan. 10, 2026 2.80 47.00 Morgan Stanley

$166,000,000 One Channel Center; One Channel Center Garage

BAMLL 2016-SS1 Boston Mass. Boston-Cambridge-Newton, Mass.-N.H.

Office Dec. 15, 2025 1.97 51.60 Bank of America Merrill Lynch

$115,000,000 5 Penn Plaza CGCMT 2016-GC36 New York N.Y. New York- Newark-Jersey City, N.Y.-N.J.-Penn.

Office Jan. 10, 2026 1.77 48.15 Citigroup

$110,000,000 Sheraton Denver Downtown Fee

CGCMT 2016-GC36 Denver Colo. Denver-Aurora-Lakewood, Colo.

Other Jan. 10, 2026 1.28 75.00 Citigroup

$109,898,450 Austin Block 21 CGCMT 2016-GC36 Austin Texas Austin-Round Rock, Texas

Mixed-use Jan. 10, 2020 1.68 62.70 Citigroup

$90,000,000 Penn Square Mall MSBAM 2016-C28 Oklahoma City

Okla. Oklahoma City, Okla. Retail Jan. 15, 2026 4.22 31.29 Morgan Stanley, Bank of America Merrill Lynch

$87,000,000 FedEx Brooklyn CSAIL 2016-C5 Brooklyn N.Y. New York- Newark-Jersey City, N.Y.-N.J.-Penn.

Industrial Nov. 15, 2025 1.98 66.70 Credit Suisse

$75,000,000 10 South LaSalle Street

WFCM 2016-NXS5 Chicago Ill. Chicago-Naperville-Elgin, Ill.-Ind.-Wis.

Office Jan. 15, 2026 2.71 63.10 Wells Fargo

$75,000,000 One Court Square

WFCM 2016-NXS5 Long Island City

N.Y. New York- Newark-Jersey City, N.Y.-N.J.-Penn.

Office Sept. 15, 2020 2.64 49.20 Wells Fargo

10 | MARCH 11, 2016

Q+A

Commercial Observer: How did you end up working in real estate?

Mr. Thelander: I enjoyed the idea of cre-ating a career path in the real estate industry because I wanted to be an integral part of the formation of urban hubs. It was an opportu-nity to shape cities and see tangible results. I earned my degree from State University of New York Plattsburgh in urban land use and planning. Throughout my early ca-reer, I worked alongside prolific developers and found a strong interest in their line of work. To further advance in the industry, I earned a master’s from the Kennedy School at Harvard University with a focus in finance and became involved in that aspect. In my current position, I have a chance to use my background and education within develop-ment. It’s all interconnected.

How did you come to work at Cushman & Wakefield?

I was recruited to join Massey Knakal [now C&W] when I was serving on the lending team at Anglo Irish Bank. I was in the midst of selling a $10 billion portfolio of loans, so it was ideal timing to change roles and further challenge myself. The position was attractive; I would be able to start up the capital services division.

My main objective when I came aboard in 2011 was to hire a strong and dynamic team of mortgage brokers who would work within our tri-state territory system. Since its inception, we have grown to reach close to $1 billion of origination in 2015 [with] a team of nine brokers.

Currently, we’re working to integrate Massey Knakal legacy brokers with the ex-isting Cushman & Wakefield equity, debt and structured finance platform. In addi-tion to this initiative, our goal is to further grow the business, form effective synergies among all the varied Cushman & Wakefield global service lines, such as our Asian desk, and continue to service existing clients to the best of our ability.

How does your experience as a lend-er inform what you do now, on the bro-kerage side?

My background is extremely advanta-geous in my current position. It allows

me, along with my team, to be further effec-tive when we’re placing loans with lenders. As a debt intermediary, my experience allows me to understand the mindset of a lender, look at transactions through their lens and have a comprehensive idea of their perspective before making a deal.

In particular, our conversations are produc-tive as we can speak their language in terms of risks in a transactions and how to mitigate those risks.

 What exactly does your role as manag-

ing director of the firm’s capital services division entail?

My role is to continue to manage the exist-ing Massey Knakal legacy platform and fur-ther integrate with the existing Cushman & Wakefield equity, debt and structured fi-nance group [which] is run by Mr. Kohn, [the group’s] president.

 What are some of the most exciting deals

you or your team has worked on lately?Last year, we were making a presentation

to a sponsor who had an existing quote from a lender for a $50 million construction loan in Harlem. The potential client shared the term sheet with us, and we were able to review and outperform with better terms. They hired us, and we were able to deliver a higher and better proceed as well as a better structure. We closed on it in late 2015 for $53.5 million.

Garret ThelanderExecutive Managing Director of Equity, Debt and Structured Finance at Cushman & Wakefield

Garrett Thelander.

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