The market is back, baby. And one of the largest office loans in New York City since COVID-19 hit U.S. shores has closed.
Nightingale Properties and Wafra Capital Partners (WCP) closed a roughly $500 million acquisition and construction loan for 111 Wall Street today, Commercial Observer can first report.
PIMCO provided the financing, according to sources familiar with the transaction.
The joint venture will use the debt package to reposition and redevelop the asset into a Class A office in the heart of the Financial District, with views of the Manhattan and Brooklyn skyline, New York Harbor and the East River.
Newmark’s Dustin Stolly, Jordan Roeschlaub and Nick Scribani negotiated the debt, while JLL’s Clark Finney, Frank Doyle, Benjamin Bass and Andrew Coe are leasing the property. Deal parties declined to confirm the lender’s identity.
“The exceptional track record, experience, and financial wherewithal of Nightingale and WCP collectively were instrumental in this innovative financing during the most challenging financing environments in history,” Stolly said.
“111 Wall’s attractive basis, coupled with an exceptional business plan and lead by best-in-class, institutional joint-venture partners allowed lenders to be comfortable with a large office redevelopment on the heels of COVID,” Roeschlaub added.
As CO previously reported, Nightingale and WCP acquired the property’s ground lease in January 2020. As the pandemic bore down and ravaged New York City, the partnership was unwavering, collapsing the asset’s fee and leasehold interest, creating fee simple ownership. Fast forward to today, and the partnership has closed one of the biggest office financings of the past 15 months.
Occupying an entire city block between Wall Street and Gouverneur Lane, 111 Wall Street encompasses 1.2 million square feet across 25 stories. It sits adjacent to Wall Street/Pier 11, as well as numerous subway lines and the Wall Street Heliport. The waterfront property was once fully leased to Citigroup and known as the Citibank Building.
Nightingale and WCP are undertaking a large renovation of the property spearheaded by Studios Architecture, which will include a new curtain wall; new floor-to-ceiling windows; a renovated lobby; touchless and smart-building technology; and a white-glove amenity program which includes 40,000 square feet of amenities, including a 125-seat conference center, event space, a bike and scooter charging room, and a fitness center known as 111 WELL.
Tenant amenities — designed by URBN Playground — will be available on the tenant’s smartphones via an 111 Wall Street app.
“The hallmark financing of 111 Wall Street enables the joint-venture partners to capitalize on the recovery and re-emergence of New York City as the market comes roaring back, specifically for best-in-class and bespoke office product,” Stolly noted.
PIMCO officials didn’t respond to a request for comment.