Meadow Companions, together with GreenBarn Funding Group and RXR, has led a $36 million most popular fairness funding for a Midtown Manhattan workplace constructing close to Bryant Park. The property, 1166 Avenue of the Americas, is owned by an affiliate of Edward J. Minskoff Equities.
This deal represents one other instance of “rescue capital” being deployed in business actual property to assist homeowners handle looming mortgage obligations. In accordance with Yardi Analysis Knowledge, the 44-story Class A tower has an excellent mortgage from Wells Fargo Financial institution that was not too long ago prolonged. The $36 million infusion is meant to bridge the financing hole.
Larger post-pandemic rates of interest have prompted banks to demand bigger upfront fairness from homeowners searching for new loans. A most popular fairness funding permits non-public credit score lenders to supply this help.
Constructed within the Seventies, the 561,000-square-foot tower underwent a renovation in 2017, together with new facilities similar to a convention heart, tenant lounge, health heart and ground-floor retail. The constructing’s location affords sturdy transit entry, with 4 public transit stations close by, together with subway and bus connections. Grand Central Terminal, Penn Station, the Port Authority and Rockefeller Middle are all inside strolling distance.
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Via these most popular fairness investments, Meadow Companions seeks to ship equity-like returns whereas sustaining debt-like danger controls. Since its basis in 2009, the non-public fairness agency has invested $566 million in 17 transactions.
Reaching a excessive occupancy price
The tower stays 98 p.c leased, with tenants averaging 10-year phrases. In January, JLL brokered a 147,543-square-foot lease with the FDIC, which relocated to a portion of the seventh ground and the whole lot of flooring eight, 9 and 10. Earlier this summer season, LEK Consulting introduced will probably be relocating to the tower underneath a 54,000-square-foot lease for the twenty fourth ground, and most not too long ago, Epiq signed a 17,850-square-foot lease for the twelfth ground, Industrial Observer reported. JLL facilitated all offers and every tenant signed for 10 years. Different tenants embody Axis Insurance coverage, LensCrafters, T-Cell, Citi and FTI Consulting, Yardi Analysis Knowledge exhibits.
In accordance with Cushman & Wakefield’s Manhattan workplace report for the second quarter of 2025, leasing within the NYC borough reached its highest-performing quarter since 2019, with 8.4 million sq. ft of leasing exercise. Renewals additionally rose roughly 47 p.c from the identical time-frame in 2024, with 4.7 million sq. ft.
Close by, Rudin Administration secured a $60 million refinancing mortgage for its property at 641 Lexington Ave., whereas CBRE not too long ago brokered a 43,000-square-foot lease at one other Meadow-owned constructing, 295 Fifth Ave.
