A joint venture between Nightingale and Kuwait-backed mutual fund Wafra Capital Partners has secured $ 500 million in funding to renovate 111 Wall Street. This is the largest office loan deal to an office in New York City since the pandemic began.
The mortgage is sponsored by several companies – including PIMCO, Oaktree Capital, Bain Capital and SKW Funding. Newmark’s Dustin Stolly, Jordan Roeschlaub and Nick Scribani negotiated the debt terms for the 24-story building.
“The attractive base of 111 Wall – paired with an exceptional business plan and led by world-class institutional joint venture partners – enabled lenders to feel comfortable with a major office remodel on the heels of COVID,” said Roeschlaub.
Despite calls on workers to return to their desks, only about 18% of them had returned to their offices, and vacancy rates in Manhattan have not yet returned to pre-pandemic levels. Still, Stolly found reasons for optimism about the future of the market.
“111 Wall St.’s signature funding enables the joint venture partners to benefit from the recovery and resurgence of New York City when the market returns, particularly for premium and bespoke office products,” he said.
The loan will fund a full renovation of 111 Wall Street under the direction of Studios Architecture and will last approximately two years. The building will be equipped with the latest non-contact and intelligent building technology – including floor-to-ceiling View Smart Glass windows that can detect incoming clouds and adjust the tint accordingly for optimal lighting conditions. The project will also have a conference center with 125 seats; a function room; a storage space for bicycles and scooters; upscale food and drink offers for tenants; a cafe and a barista bar; and a fitness center known as 111 WELL.
Wafra and Nightingale acquired the 1.2 million square foot property from Zurich Alternative Asset Management in January 2020 for $ 284 million and paid approximately $ 287 per square foot. They also took over the long lease on 111 Wall Street for an additional $ 175 million.
The property occupies an entire block between Wall Street and Governor Lane, with direct access to public transportation from Wall Street Pier 11 (served by NYC Ferry, NY Waterway, NY Water Taxi, SeaStreak, and New York Beach Ferry); several subway lines; and the Wall Street helipad.
Last modified: June 16, 2021