NEW YORK — Iron Hound Management Co. LLC has completed more than $400 million in loan modifications and refinancing for two New York properties, a pair of Midtown office towers and a Brooklyn industrial complex.
In the case of the Midtown towers, Iron Hound structured the payoff of a $106 million defaulted securitized loan and the placement of new debt with Starwood Capital for sponsors Joe Stavrach and Faraj Srour. The buildings include 2 W. 46th St., which totals 150,000 square feet of office space and 17,000 square feet of retail space; and 369 Lexington Ave., which totals 108,000 square feet of office and 20,000 square feet of retail.
For the industrial complex — a 6.1 million-square-foot asset in the Greenwood Heights neighborhood known as Bush Terminal — Iron Hound restructured a $300 million securitized loan with LNR.
The property, which is home to a diverse mix of businesses including apparel manufacturing and warehousing, is in the midst of a 10-year modernization and preservation program and will use the influx of cash for post-Hurricane Sandy repairs and other improvements.
“This is the second modification that Iron Hound arranged on this asset for sponsor Ruby Schron,” says Robert Verrone, Iron Hound principal. “In the most recent modification, a team from Belvedere, Jamestown and Angelo Gordon were brought into the deal. Iron Hound arranged the assumption and restructured the existing modification to give the new borrowing entity the ability to put more capital into the project, gain a higher preferred return and more favorable back-end splits.”
Founded in 2009, Iron Hound has completed nearly $10 billion in restructuring assignments to date and is actively engaged in more than 30 assignments totaling more than $2 billion. Verrone, an 18-year veteran of the commercial real estate business, worked as co-head of Wachovia’s Real Estate Group prior to creating the company.
— John McCurdy