Walker & Dunlop, Inc. announced today that it arranged $170,000,000 in financing from PCCP, LLC for 122 Fifth Avenue, a historic mixed-use office and retail building located on Fifth Avenue, between West 17th and 18th Streets, in Manhattan, New York. The property, owned by Bromley Companies for over 40 years, is currently undergoing a comprehensive renovation and repositioning plan.
Walker & Dunlop’s Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, as well as Sean Bastian and Michael Ianno, arranged the financing on behalf of their client and tapped into their broad network of capital providers to identify PCCP, LLC as the ideal lender. The team successfully refinanced the property’s existing loan in addition to securing funding for capital expenditures and tenant improvements necessary to undertake the extensive redevelopment.
“The financing arranged by the Walker & Dunlop team provided us with the opportunity to partner with PCCP on a seamlessly executed financing transaction and continue with a robust capital improvement plan for 122 Fifth Avenue and introduce new, modern space to the Midtown South community,” said Neal McGraw, Chief Financial Officer of Bromley Companies. “With a post-COVID design in mind, we’ll be adding collaborative workspaces and offer the largest office floorplates in the Flatiron / Union Square submarket, complete with horizontal and vertical expansion opportunities, among other enhancements.”
Mr. Appel added, “Bromley Companies is a valued client that has built a spectacular reputation over decades as an investor, developer, and operator. With a brand-new look and feel, 122 Fifth Avenue will cement itself as an extremely valuable property within Bromley’s diverse portfolio. It has been fully occupied for almost 30 years, and will no doubt continue to attract the world class technology, media, and enterprise companies that are positioned in the area.”
“PCCP was pleased to provide this loan to Bromley Companies for the opportunity to redevelop what we believe will be one of Midtown South’s most desirable office properties,” said Brian Haber of PCCP. “Bromley is an experienced, long-term owner. Bromley remained committed to their business plan throughout a period with a lot of uncertainty and their commitment was rewarded here by landing a highly coveted tenant. It was a pleasure to work with the Walker & Dunlop team on another financing as we continue to grow our New York footprint.”
At approximately 300,000 square feet, 122 Fifth Avenue was originally built in 1900, along with the other pre-WWI buildings that line Fifth Avenue from 14th to 23rd Street. Upcoming renovations will feature an 18,700-square-foot rooftop overlooking the Empire State Building and Hudson Yards. With indoor and outdoor elements, the unique penthouse space will be home to The Pavilion, a 4,315-square-foot jewel box with floor-to-ceiling wrap-around glass, surrounded by 13,200 square feet of terraces. The property is within walking distance of New York City’s Union Square transit hub, Madison Square Park, and Union Square Park.
As the fourth largest commercial real estate lender in the United States in 2020, Walker & Dunlop is a leader in the industry and continues to expand its capabilities and reach across the country. The firm has ambitious goals to expand its capital markets business, with a goal to originate $65 billion of annual debt financing volume by 2025. To learn more about our capabilities and financing options, visit our website.
About Walker & Dunlop
Walker & Dunlop (NYSE: WD) is the largest provider of capital to the multifamily industry in the United States and the fourth largest lender on all commercial real estate including industrial, office, retail, and hospitality. Walker & Dunlop enables real estate owners and operators to bring their visions of communities — where Americans live, work, shop and play — to life. The power of our people, premier brand, and industry-leading technology make us more insightful and valuable to our clients, providing an unmatched experience every step of the way. With over 1,000 employees across every major U.S. market, Walker & Dunlop has consistently been named one of Fortune’s Great Places to Work® and is committed to making the commercial real estate industry more inclusive and diverse while creating meaningful social, environmental, and economic change in our communities.