$163.5 Million First Mortgage and Mezzanine Financing Arranged by HFF for 375 Pearl Street in Manhattan

NEW YORK--(BUSINESS WIRE)--The New York office of HFF (Holliday Fenoglio Fowler, L.P.) announced today that it arranged a $163.5 million acquisition and pre-development loan for a nearly 1.1 million-square-foot condominium interest in 375 Pearl Street in downtown Manhattan.

HFF managing director Evan Pariser, director Steven Klein and senior analyst Todd Newman worked exclusively on behalf of the borrower, a joint venture between Taconic Investment Partners, LLC and Square Mile Capital, LLC, to secure the adjustable-rate, first mortgage and mezzanine financing through Apollo Real Estate Advisors, LP and M&T Bank.

375 Pearl Street (also known as the Verizon Building) was originally built in 1975 for Verizon, which post-closing will leaseback three floors of the building for its telecommunications operations. The new owner’s condominium interest will include the remaining 29 floors, along with a portion of the ground floor and cellar. The 32-story property will be redeveloped into multi-tenant office space with renovations including a new façade “to open up the spectacular views”, as well as modernizing the lobby, redeveloping the exterior plaza, installing new elevators and updating the mechanical systems. Located at the intersection of Pearl Street and Avenue of the Finest, 375 Pearl Street is within the City Hall District in downtown Manhattan, immediately north of the South Street Seaport.

Since its inception in 1997, Taconic Investment Partners LLC has acquired and developed more than eight million square feet of office properties in New York City, Chicago, Washington, D.C. and Atlanta. In addition, it recently bought and is renovating two large residential complexes in Brooklyn and the Bronx, is co-developer of the new luxury high-rise Caledonia condominium and rental development along the High Line in Manhattan, has assembled significant land holdings in Coney Island (Brooklyn) for residential development, and just completed a prime site in the Meatpacking district of Manhattan leased by Apple Computer.

Square Mile Capital Management LLC is a diversified real estate investment firm that focuses on sourcing and managing real estate and related equity, debt and hybrid investments on behalf of select institutional and private investors. Square Mile takes a value-oriented approach to its investment activities, with an emphasis on opportunities to acquire or capitalize assets or enterprises that are undervalued, overlooked, complex or mispriced.

HFF (NYSE:HF) operates out of 18 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, note sales and note sale advisory services and commercial loan servicing.