MONY arranges financing for 485 Fifth Ave

Real Estate Weekly, Jan 13, 1999

The MONY Group Real Estate Investment Management arranged a $20.5 million first mortgage for 485 Fifth Avenue, an office building at Fifth Avenue and 41st Street in Manhattan. The property was acquired for $30.8 million in July by Northstar Capital Partners LLC, a major real estate investment fund. The announcement was made by Richard Katzenstein, the firm's Real Estate Vice President and loan officer on the transaction.

Built in 1911, 485 Fifth Avenue is currently 99 percent leased and boasts a commanding view of the Main Branch of the New York Public Library from its perch in the heart of the city's Grand Central District. The property's primary tenant is designer Tommy Hilfiger. Northstar Capital Partners LLC plans a series of capital improvements to 485 Fifth Avenue which will further enhance its value and position in the market.

"This transaction underscores our confidence in the New York City office market, and the Grand Central sub-market in particular," Katzenstein said. "We are bullish on the market, which has not been caught in a down-draft of overdevelopment, and is well positioned for long-term success and growth. This asset, which is so will-located, leased and fantastically located, is a perfect example of the type of product that fails right into our parameters."

The $20.5 million first mortgage has a seven-year term and a 25-year amortization. The loan is an example of MONY's commitment to real estate lending in markets and products in which it has confidence.

The MONY Group Real Estate Investment Management comprises more than 35 real estate professionals in five regional offices managing MONY's $1.2 billion commercial mortgage and $800 million real estate equity portfolio. MONY Real Estate provides real estate asset management and investment services, including loan origination and equity oriented investments for both MONY, as well as third party clients.