N.Y. Life Investment closes on $58M leasehold mortgage

Real Estate Weekly, Oct 10, 2001

New York Life Investment Management LLC, as investment manager for lead lender New York Life Insurance Company, has closed a $58 million leasehold mortgage just blocks from the site of the World Trade Center devastation. The company said today that the mortgage is a co-investment between New York Life and the New York State Teachers' Retirement System, with each entity funding half of the loan.

The mortgage is on a 27-story, 324-unit apartment building that was completed in March 2001, in the North Residential Neighborhood, one of four residential neighborhoods in Battery Park City.

The borrower is 22 River Terrace LLC, a New York company controlled by the principals of Rockrose Development Corp.

Gary E. Wendlandt, chairman and chief executive officer of New York Life Investment Management, said, "the building that we are financing survived the attack, is structurally sound, and has good prospects for anchoring the recovery of the downtown area. We also feel that this loan is a clear statement of our company's faith in the people of New York and in the City's ability to rebound and rebuild. We hope it serves as an inspiration for others to help revitalize lower Manhattan."

He noted that the leasehold mortgage contains an earn-out provision of not more than $10 million, subject to future qualifying factors.

"We believe this is a sound investment that also provides us an opportunity to support revitalization efforts in this area so recently struck by tragedy," said George Philip, executive director of the New York State Teachers' Retirement System. "This property, located in the heart of New York City's financial district, symbolizes our confidence in the underlying strength of the New York City and U.S. economies," he said.

The Singer & Bassuk Org. acted as broker for the transaction.