NEW YORK CITY — Walker & Dunlop Inc. has arranged a $205 million loan for the refinancing of Hudson Research Center in Manhattan’s Midtown West neighborhood. Located along the Hudson River at 619 W. 54th St., the Class A life sciences and medical office property spans 320,000 rentable square feet.
Originally built in 1930 as a film-editing house for Warner Brothers Pictures, the Art Deco property came to be known as The Movie Lab Building. Taconic Partners purchased the asset in October 2012 and undertook a capital improvement plan, including creating several floors of research space; updating the building’s façade, interior and crown; and adding tenant amenities such as bike storage and private showers. In 2017, Taconic recapitalized the asset with Silverstein Properties Inc.
Since the end of 2013, the number of life sciences jobs nationally has increased by 70,000 per year, according to Walker & Dunlop. Demand for well-located, modernized life sciences and medical office space has soared nationally amid industry growth and lack of available product, adds the finance company.
A Walker & Dunlop team led by Aaron Appel and Keith Kurland arranged the loan, with Square Mile providing the funds. The interest-only financing features a floating rate, three-year term and two one-year extension options. In addition to refinancing existing debt, the loan will provide future funding for the buildout and lease-up of the property.
“Walker & Dunlop witnessed an incredible amount of demand for this financing given the best-in-class sponsor and attractive asset type, despite a challenging capital markets landscape during the COVID-19 pandemic,” says Keith Kurland, senior managing director.
New York City-based Taconic Partners has developed and repositioned over 12 million square feet of office, mixed-use and retail space since 1997. Also based in New York City, Silverstein Properties has developed, owned and managed more than 40 million square feet of office, residential, hotel, retail and mixed-use properties since its inception in 1957. The company is best known for the redevelopment of the World Trade Center.
— Kristin Hiller