July 15, 2022 4:00 PM
Newmark has arranged $175 million in capitalization to facilitate the acquisition and renovation of 45 East 53rd Street (“Park 53”), a premier office building located in the Plaza District of Midtown Manhattan, by a joint venture formed between ZG Capital Partners and Rialto Capital Management. The Newmark team was led by Vice-Chairmen and Co-Heads of the Debt & Structured Finance team Dustin Stolly and Jordan Roeschlaub with Senior Managing Director Daniel Fromm. Eden Abraham and Michael Dorfman provided additional support on the transaction. ACRES Capital provided the loan to finance the acquisition and fund the comprehensive renovation plan, which will position the asset as a highly amenitized boutique Park Avenue office building. The joint venture has hired Newmark’s Brian Waterman and Scott Klau to handle the leasing of the asset.
Newmark arranged the joint venture between ZG Capital and Rialto Capital Management for the project, with a total future capitalization of $175 million, of which $120 million will come from the loan and $55 million will come from equity. The effort to raise capital for the project is part of Newmark’s continued push into complex joint venture financing. Led by Stolly and Roeschlaub, the initiative focuses on raising capital for platform and programmatic joint ventures. Most recently, the group arranged a total of $432 million in joint venture financing for a luxury Manhattan waterfront residential development and 2600 Biscayne Boulevard in Miami.
Initially developed in 1991 as the NYC headquarters for Santander Bank, Park 53 represents a twenty-story, 129,000 square foot boutique office tower featuring a striking glass and steel facade and irreplaceable location on the corner of 53rd Street and Park Avenue, just a short walk from Grand Central. The property’s positioning behind the one-story landmarked Lever House provides all floors with exceptional natural light and views of Park Avenue without the risk of obstruction from future development. Park 53 will offer tenants reimagined workspaces, a full suite of amenities and unparalleled access to the city along the iconic Park Avenue.
The full-scale interior renovation and modernization of the asset and the building’s efficient column-free floor plates are expected to attract strong demand from small to medium-sized tenants seeking prestigious and highly amenitized full-floor space. Renovations will consist of a reimagined lobby, upgraded common areas and elevators, activation of outdoor spaces on the seventh and 11th floors and the addition of two amenity centers.
About ZG Capital Partners
ZG Capital Partners is a New York-based real estate investment firm with extensive ownership and operating experience, led by Bobby Zar and James Tamborlane. The company targets both “stabilized”, income-producing properties as well as “value-add” transactions that require renovation, repositioning and lease-up. The firm’s goal is to effectively deploy capital and add value to their assets through intensive hands-on, day-to-day asset management. ZG Capital Partners’ holdings include 1450 Broadway in Times Square, The Bruckner Building in Mott Haven, 654 Broadway, 1331-1365 Halsey Street, 1410 Lexington Avenue and 836 Broadway.
Rialto, in conjunction with its subsidiaries, is a fully integrated real estate investment management and asset management company with a dedicated special servicer. On behalf of the vehicles it manages, Rialto invests and manages assets throughout the real estate capital structure in real estate properties, loans and securities. Rialto is led by an experienced executive management team with a distinguished track record that spans multiple cycles. Rialto’s professionals actively originate and manage investments across all property types nationwide. Led by Founder/CEO, Jeff Krasnoff and President, Jay Mantz, Rialto currently has professionals in 12 locations throughout the United States.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues of nearly $3.1 billion for the twelve months ending March 31, 2022. Newmark’s company-owned offices, together with its business partners, operate from approximately 170 offices with 6,300 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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