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April 20, 2018  

Pearlmark Shops for NY Office Loan

Pearlmark Real Estate is looking to lock in a new $125 million mortgage on the Tower 56 office property in Midtown Manhattan.

The Chicago fund operator is taking quotes on a debt package carrying either a fixed or floating rate, with a preference for a five- or seven-year term. Newmark is advising Pearlmark on the financing.

The loan-to-value ratio would be about 55-60%. About $5 million of the proceeds would be set aside as a future-funding component, likely tied to certain financial performance hurdles.

The collateral is a 190,000-square-foot building at 126 East 56th Street, in the Plaza District submarket. Pearlmark, then known as Transwestern Investment, bought the property in 2008 from a partnership between New York investors Macklowe Properties and Fortress Investment. The sale price was $158 million.

Deutsche Bank provided a $102.7 million loan to finance the acquisition. Pearlmark refinanced that mortgage in 2013 with $104 million of fresh debt, most of it provided by CIBC. The bulk of the proceeds from the new loan would be used to extinguish that note.

The 33-story building was constructed in 1982. It is between Park and Lexington Avenues. The nearly fully occupied property is described as attractive to tenants with modest space needs due to its relatively small floor plates.