$73M to Buy and Expand Office Building

APF Properties and Drake Street Partners received a $73.4 million package of financing to buy an office building in Manhattan’s Hudson Square neighborhood. They plan to nearly double the size of 163 Varick Street, by adding five new floors to the existing six-story, 60,000-square-foot building.

Construction is planned to start in 2018. When work is finished, the building will be rebranded as 60 Charlton Street, an 11-story building with about 100,000 square feet of office space. The ambitious plan drew debt and equity from SL Green and ACORE Capital.

“Both SL Green and ACORE were attracted to the unique nature of the redevelopment – what will be a new boutique office asset in a dynamic submarket – as well as the strong qualifications of the highly capable sponsor group of APF Properties and Drake Street,” said Shawn Rosenthal, for CBRE Capital Markets’ Debt & Structured Finance team, which secured the financing for the developers.

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