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July 12, 2019  

Lenders Eye Converted Tower at 70 Pine Street

A partnership is seeking a $385 million mortgage on the skyscraper at 70 Pine Street in Lower Manhattan.

Fixed- and floating-rate quotes are being considered for the former AIG headquarters, which DTH Capital and Rose Associates converted to high-end hotel rooms and apartments in 2016. The preferred loan term is 3-5 years.

JLL is pitching the assignment for DTH and Rose, which would use most of the proceeds to retire a $375 million floating-rate loan arranged by Brookfield Asset Management of Toronto. Brookfield placed the senior portion with Bank of China and ING Real Estate Finance.

The 66-story Art Deco building, completed in the early 1930s, remains one of the tallest and more recognizable towers on Manhattan’s Financial District skyline, with a distinctive Gothic-style spire. The roughly 1 million-square-foot property was granted landmark status in 2011.

Insurer AIG owned and occupied the building for more than 40 years, until becoming embroiled in the market crash. In 2009, it sold the property and the nearby building at 72-74 Wall Street for $150 million. The buyer was a partnership between New York developer Youngwoo & Associates and Kumho Investment Bank of South Korea.

DTH and Metro Loft Management of New York acquired 70 Pine Street in 2011 for $205 million. Rose replaced Metro Loft in the ownership group soon afterward.

DTH and Rose then embarked on a redevelopment and conversion that cost a reported $600 million. The 612 luxury apartments on upper floors began renting in early 2016. The 132-room extended-stay Q&A Residential Hotel, on Floors 3-6, opened late that year. There’s also 30,000 sf of ground-level retail space, partially occupied by Crown Shy restaurant, and a restaurant is slated to open at the top of the tower within a few months.

Lyric Hospitality, a startup backed by Airbnb, will take over operation of the hotel in the coming months. The company plans to update the rooms and market them to short-term visitors seeking luxury accommodations, including full kitchens.

Rents on available apartments range from $3,455 for a studio to $9,500 for three bedrooms. Amenities include a doorman and concierge service, a fitness center, a bowling alley, a screening room, a game room and a children’s playroom.

DTH and Rose are both based in New York. DTH runs money for Eastbridge Group of Luxembourg and a subsidiary of Brussels insurer Ageas. Rose, a family-owned developer founded in 1925, is headed by chief executive Amy Rose.