A personal fairness agency tied to a rich Chinese language investor consolidated its possession of a struggling Madison Avenue property with a $200 million land deal.
Titan Golden Capital, which late final yr picked up the bottom lease on the distressed workplace constructing at 645 Madison Avenue for $26.6 million, has now bought the bottom beneath the tower, The Actual Deal has discovered.
The Irvine, California-based fund paid $201 million to purchase the property from a three way partnership that features Richard Baker, CEO of Saks Fifth Avenue proprietor Hudson’s Bay Firm.
The acquisition offers Titan Golden full possession of the 22-story constructing — situated a block from Central Park on the nook of Madison Avenue and East sixtieth Avenue — which had struggled partially because of its expensive lease.
After falling behind on their $50 million mortgage, earlier house owners Friedland Properties and Nightingale Properties handed the keys to the constructing back to their lender, East West Financial institution, in September, as a substitute of going by means of foreclosures.
The Friedland household had teamed up with Elie Schwartz and Simon Singer’s Nightingale to purchase the bottom lease on the roughly 160,000-square-foot workplace and retail constructing in 2015. On the time, town’s retail market, together with Madison Avenue’s “Gold Coast” from East 57th to East 72nd streets, appeared prefer it may solely go up. However the retail bubble burst and rents by no means returned to their dizzying heights.
Including to the troubles, the bottom lease with Baker’s funding group not too long ago jumped because of a lease reset, in line with an individual conversant in the matter. When East West Financial institution took again the property, it discovered itself going through the identical monetary predicament that hindered its debtors.
Inside weeks, the financial institution rotated and bought the lease to Titan Golden, which one supply mentioned is a shopper of the financial institution. The almost $27 million the personal fairness agency paid for the lease was a major drop from the $76 million that Friedland and Nightingale paid once they acquired the property in 2015 from TF Cornerstone and Pershing Sq. Capital Administration’s Invoice Ackman.
Titan Golden determined it was higher to personal the property outright and struck a deal to purchase the bottom from Baker in a transaction negotiated by Marcus & Millichap’s Eric Anton and Nelson Lee.
Representatives for Titan Golden and Baker’s possession group couldn’t be instantly reached for remark. A consultant for the brokers declined to remark.
Titan Golden is tied to traders Chi Fai Ben Wong and Hao Tang, who not too long ago purchased a French Normandy-style mansion in Los Angeles from billionaire leveraged-buyout specialist Alec Gores for $70 million.