A joint venture between Nightingale and Kuwait-backed investment fund Wafra Capital Partners secured $500 million in financing for renovations at 111 Wall St., in what is the largest office loan deal for a New York City office space since the onset of the pandemic.
The mortgage is sponsored by several entities – including PIMCO, Oaktree Capital, Bain Capital and SKW Funding. Newmark’s Dustin Stolly, Jordan Roeschlaub and Nick Scribani negotiated the terms of the debt for the 24-story building.
“111 Wall’s attractive basis — coupled with an exceptional business plan and lead by best-in-class, institutional joint-venture partners — allowed lenders to be comfortable with a large office redevelopment on the heels of COVID,” Roeschlaub said.
Despite calls for workers to return to their desks, only about 18% of them had returned to their offices, and Manhattan vacancy rates have yet to revert to their pre-pandemic levels. However, Stolly found reasons for optimism regarding the future of the market.
“The hallmark financing of 111 Wall St. enables the joint-venture partners to capitalize on the recovery and re-emergence of New York City as the market comes roaring back, specifically for best-in-class and bespoke office product,” he said.
The loan will fund a complete overhaul of 111 Wall St. led by Studios Architecture and will last approximately two years. The building will be outfitted with the latest in touchless and smart-building technology — including floor-to-ceiling View Smart Glass windows, which can detect incoming clouds and adjust the tint accordingly for optimal light conditions. The project will also boast a 125-seat conference center; an event space; a bike and scooter charging room; upscale food and beverage options for tenants; a café and barista bar; and a fitness center known as 111 WELL.
Wafra and Nightingale acquired the 1.2-million-square-foot property from Zurich Alternative Asset Management in January 2020 for $284 million, paying roughly $287 per square foot. They also took ownership of the ground lease for 111 Wall St. for another $175 million.
The property occupies an entire block between Wall Street and Gouverneur Lane, with immediate access to mass-transit via Wall Street Pier 11 (serviced by NYC Ferry, NY Waterway, NY Water Taxi, SeaStreak and New York Beach Ferry); several subway lines; and the Wall Street Helipad.