PGIM provides $89m refinancing to Madison Capital/Lubert-Adler JV for 71 Fifth Avenue
PGIM has provided an $88.5 million loan to Madison Capital and Lubert-Adler Partners to refinance 71 Fifth Avenue, an office and retail building in New York City.
The three-year bridge financing includes two one-year extension options and will be utilized while Madison Capital completes re-leasing the remaining office and retail space at market rents and finishes redeveloping the property. The renovation plans include new lobbies, modernized elevators and upgraded tenant spaces.
71 Fifth Avenue is located on the southeast corner of 15th Street and Fifth Avenue in the heart of the Flatiron district. Located one-half block from Union Square, the building has excellent transportation options nearby with 12 subway lines within three blocks of the property. International retailers such as Lululemon, Zara and Michael Kors, as well as neighborhood amenities like Madison Square Park, Eataly and the Gramercy Park Hotel, are in close proximity.
The 151,889-square-foot office portion of the property features loft-style layouts with 12-foot, vaulted ceilings, oversized windows and open, rectangular floor plates, and includes top-tier technology, media and advertising firms as tenants. The 18,441 square feet of retail space features two suites with 18-foot ceiling heights, 70 feet of Fifth Avenue frontage, and a NYC Landmark Preservation Commission–approved branded awning and flag.
“Since acquiring 71 Fifth Avenue in 2017, we undertook efforts to modernize the property, enhance tenancy and give the building a stronger identity in the market,” said Jonathan Ratner, managing director for Madison Capital. “PGIM was flexible in structuring the financing to meet our needs for the next phase of the investment. We will work closely with PGIM to continue executing redevelopment plans and bring this premier asset to full stabilization.”
“The highly desirable location of this mixed-use property and the strength of the sponsor and their business plan make this an attractive financing opportunity that will provide income-driven cash flow over the loan term for our investors’ portfolio,” said Steve Bailey, managing director and portfolio manager for PGIM’s real estate debt strategies.
Through its PGIM Real Estate Finance and PGIM Real Estate businesses, PGIM’s real estate debt strategies leverage a 140-year history of real estate finance and a 45-year legacy of investing in commercial real estate on behalf of institutional investors.
