NEW YORK CITY — Meridian Capital Group LLC has secured $230 million in acquisition financing for the purchase of Steinway Hall building, a 247,000-square-foot, 16-story office building on West 57th St. in Midtown Manhattan. The commercial real estate finance and advisory firm arranged the one-year, interest-only loan on behalf of the borrower, a partnership led by JDS Development Group.
Aaron Appel and Moshe Majeski, managing directors of Meridian Capital, originated and executed the fixed-rate financing, which features two six-month extension options.
According to the Wall Street Journal, Steinway Musical Instruments Inc. (NYSE: LVB) sold its interest in the Steinway Hall building to the partnership led by JDS Development Group in June. In the transaction, Steinway received a cash purchase price of $46.3 million.
Steinway Hall, built in 1924, was designated and registered as a historic and cultural landmark in 2001. Since its construction, the building has been either fully or partially occupied by Steinway & Sons, the famous piano-maker. The façade of the building features an ornate carving above the grand window, and the main room of the building is a two-story rotunda with a domed ceiling.
The property is situated between Sixth and Seventh avenues in Manhattan, with direct access to Central Park, Columbus Circle, Rockefeller Center, Times Square and the Museum of Modern Art.
As part of the $230 million transaction, JDS Development Group, along with partner Property Markets Group, also recapitalized and consolidated its existing development parcel at 105-107 W. 57th St., which is next door to the Steinway Hall building. Appel says that JDS will construct a 900-foot tall tower at the new site.
“The acquisition financing provided the sponsorship with the necessary capital to create a truly extraordinary development assemblage,” says Appel.
“The 57th Street corridor remains one of the most attractive locations for retail and residential development in the city,” adds Majeski. “This is evidenced by the numerous development projects underway and the recent volume and velocity of property sales in the area.”
Back in March, Meridian Capital arranged another acquisition loan on behalf of JDS Development Group. The $128 million loan financed the JDS purchase of a 730,426-square-foot development site, located at 616 First Ave. in Manhattan.
— John Nelson