Benchmark Real Estate Group has completed a $44.5 million commercial mortgage-backed securities (CMBS) refinancing for a multifamily property in Manhattan's East Village, as Commercial Observer has learned. Citigroup provided the CMBS loan for the six-storey, 61-unit apartment building at 194 East Second Street. Benchmark had acquired the property in 2024 for $43 million from Skyline Developers.
JLL brokered the refinancing with a debt advisory team led by Michael Zaremski, John Flynn, and Clayton Ross. Zaremski stated in a release that demand for high-quality multifamily assets in Manhattan continues to be underpinned by exceptionally strong operational fundamentals, limited new supply, and sustained tenant demand. 194 East Second Street represents a rare combination of institutional quality characteristics.
Extensive Modernisation and High-Quality Amenities
The six-storey property, located at the corner of East Second Street and Avenue B, underwent extensive renovations after its acquisition by Benchmark two years ago. This included modernisations to individual units as well as common and amenity spaces, according to JLL. The resident amenities are diverse and include conveniences that meet current demands for high-quality living.
- —Fitness centre
- —Sauna
- —Yoga studio
- —Pilates room
A courtyard complements the offering, providing residents with additional recreational areas. The 194 East Second property also features approximately 15,450 square feet of retail space, anchored by Duane Reade. This ensures a solid base for additional revenue and offers residents convenient access to essential services.
Development of Debt Capital Markets
Ross explained that this transaction is a compelling example of how debt capital markets are evolving to meet investor demand for well-leased, institutional-quality assets. Citi's specialisation in pure multifamily CMBS portfolios creates a more efficient execution path for investors like Benchmark who own high-quality, stabilised properties. Citigroup and Benchmark Real Estate Group did not immediately respond to requests for comment.
