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Silverpeak, Swig refinance NY office for $161.5m

The Lehman Brothers spinout and the New York-based developer and investor have refinanced 110 William Street in downtown Manhattan with $161.5 million in new financing, which included a mezzanine loan from Pearlmark Real Estate Partners.

Silverpeak Real Estate Partners and Swig Equities have closed on the refinancing of 110 William Street, a 900,000-square-foot office building located in Manhattan’s Financial District. Silverpeak is acting as asset manager for Longwing Real Estate Ventures, a member of the Dubai Investment Group, which co-owns the asset with Swig.

UBS Real Estate Securities and Barclays Capital provided a new $141.5 million first mortgage, which is expected to be securitised in an upcoming CMBS transaction, for the asset. In addition, Pearlmark Real Estate Partners, a Chicago-based real estate fund manager, provided a $20 million mezzanine loan on behalf of Pearlmark Mezzanine Realty Partners III, a $427 million real estate debt vehicle.

“This was a challenging transaction that took creativity and flexibility by all involved,” said Michael Girimonti, managing director of Pearlmark, in a statement. “The strong credit metrics, quality tenancy, attractive debt basis and significant reserves and structure make this a compelling debt investment.”

Swig and Longwing have owned 110 William Street since 2004, when they purchased the building for $164.5 million. The property currently is valued at $264.3 million, according to data provider Real Capital Analytics.

Last year, Silverpeak, which is led by former Lehman Brothers executives Mark Walsh and Brett Bossung, won a mandate to manage $1.1 billion of commercial real estate assets in the US and Germany on behalf of Dubai Investment Group, a real estate subsidiary ultimately owned by Dubai Holding, the Middle Eastern state’s financial conglomerate.