Apollo Commercial Real Estate Finance (ARI) is seeking to syndicate $234 million of a $325 million mezzanine loan it closed for the construction of a supertall condominium development at 111 West 57th Street in Midtown Manhattan. The firm funded $41 million, an affiliate of Apollo Global Management funded $50 million, while it will look to syndicate the balance, PDI’s sister publication Real Estate Capital reports.
The four-year, floating-rate loan with one 12-month extension option is part of a $725 million financing that includes a $400 million first mortgage loan from AIG.
The mezz loan has an appraised loan-to-net-sellout of 42 percent and has been underwritten to generate an internal rate of return of approximately 16 percent.
The funding reportedly allows the developers JDS Development and Property Markets Group to refinance a previous $230 million loan from Annaly Capital.
The new loan backs a $1 billion, 80-story tower that is set to become one of the tallest residential buildings in the Western Hemisphere upon completion (in 2018), stretching taller than 1,400 feet. It will include 253,000 square feet of condo space and 52,500 square feet of retail.
ARI is a real estate investment trust that primarily originates, invests in, acquires and manages performing commercial real estate first mortgage loans, subordinate financings, commercial mortgage-backed securities and other commercial real estate-related debt investments.
The company is externally managed and advised by ACREFI Management, an indirect subsidiary of Apollo Global Management, a leading global alternative investment manager with approximately $162.9 billion of assets under management.