The Brill Building Sold for $185.5M

Real estate investor Eric Hadar of Allied Partners, along with the private equity firm Brickman, have taken ownership of the iconic Brill Building in New York at a purchase price of $185.5 million, or about $1,100 per square foot. Barry Sternlicht's Starwood Property Trust provided a $158.5 million first mortgage to help finance the transaction, while Square Mile Capital Management provided $40 million of financing. Adam Spies and Doug Harmon of Eastdil Secured brokered the sale.

"We are excited to be involved in a project that will help modernize one of Times Square's most famous and storied buildings," said Boyd Fellows, President and Director of Starwood Property Trust. "This transaction is a prime example of our unique ability to act as a one-stop-shop to provide large, highly specialized loans that meet the needs of high-quality sponsors like Allied Partners and Brickman."

The Brill Building was 27% occupied at the time of sale, but the new owners have plans to begin extensive renovations expected to retain the landmark building's heritage and aesthetic while modernizing infrastructure. The new space, opening in 2014 will house the Songwriters Hall of Fame among other tenants including fashion, arts, media, entertainment and other creative office users, according to a CoStar report. Moving forward, retail leasing will be managed by Jeffrey Roseman of Newmark Grubb Knight Frank with commercial leasing run by Paul Kotcher of Brickman.

For more news and information visit Blumberg Capital Partners.

SF Financial District Building Gets $126M Loan via Starwood

Starwood Property Trust announced today that it had originated a $126 million first mortgage loan and mezzanine loan for 100 Montgomery in San Francisco on behalf of Blackstone Real Estate Partners VII. Blackstone Group agreed to buy a 25-story building in downtown San Francisco for $165 million last month from a joint venture of Houston-based Hines and Sterling American Property Inc., which previously purchased the tower in January 2006 for $67.5 million from Equities Office Properties Trust. Starwood has said that it will sell the first mortgage "in the near term" to increase its investment returns. The total financing will have an initial funding of $115.5 million with $10.5 million of future funding for tenant improvements and leasing commissions.

"We are excited to complete another complex financing transaction with Blackstone," said Boyd Fellows, President and Director of Starwood Property Trust. "Similar to the $61 million Glendale transaction we announced earlier this quarter, we funded the entire capital stack with a flexible structure which meets Blackstone's exact financing needs. Our ability to act as a 'one stop financing solution' for borrowers looking to finance large transitional assets is a significant strategic advantage."

As of last month, the office building was 84% occupied, with the U.S. General Services Administration as its largest tenant, according to the people. Situated on the corner of Sutter and Montgomery Streets in the Financial District, the building offers more than 420,000 square feet of space including retail storefronts. 100 Montgomery, also known as the Equitable Life Building, has undergone $54 million in capital improvements redesigned by Robert A.M. Stern Architects, including a comprehensive renovation in 2009 that added a new glass facade and lobby.

For more news and information visit Blumberg Capital Partners.