A joint venture between Aurora Capital Associates and William Gottlieb Real Estate has secured a $293 million loan to refinance a mixed-use property in Manhattan's Meatpacking District. Corebridge Financial provided the fixed-rate, long-term financing for the 158,957 square foot building at 40 10th Avenue.
Completed in 2019, the property comprises 112,241 square feet of office space and 46,176 square feet of retail space, distributed across the first two floors. Real estate firm Walker & Dunlop negotiated the loan with a team consisting of Dustin Stolly, Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Sean Reimer, Jordan Casella and Stanley Cayre.
Attractive location and full occupancy
Dustin Stolly, Senior Managing Director of the Capital Markets Institutional Advisory Team at Walker & Dunlop, commented on the property in a statement. He emphasised that 40 10th Avenue stands out due to its building quality, location and tenant experience – all elements that make a property attractive to tenants. Stolly highlighted that the fully occupied office component, institutional tenant roster and generous outdoor space demonstrate the continued demand for high-quality, well-located workplaces in New York.
The ten-storey building houses office tenants such as Starwood Capital Group, WestCap Management, RTW Investments, Stripes and Checkout.com. The retail section of the property is occupied by Hyundai Motor.
Stable market positioning
According to Walker & Dunlop's assessment, the property is excellently positioned, as the Meatpacking District is among Manhattan's submarkets with the lowest supply for office and retail. In June 2020, Aurora Capital Associates and William Gottlieb Real Estate had already received a $150 million loan from Deutsche Pfandbriefbank to refinance the project's construction debt. A statement from Corebridge Financial, Aurora Capital and William Gottlieb Real Estate regarding this current transaction was pending at the time of publication.
