Inside TH Real Estate’s portfolio

TH Real Estate made a $141.5 million loan to a joint venture between KKR and TMG Partners for the acquisition and future capitalisation of 1330 Broadway, a recently renovated office tower in Oakland, California. The seller, TMG Partners, recently carried out a $31.5 million repositioning from 2015 to 2018. The property features a fully renovated lobby, elevator modernisation, new roof, upgraded building and mechanical systems, renovated restrooms, seismic upgrades and enhanced common areas. TMG retains a minority ownership in the property and continues to carry out the day-to-day management. The loan includes a future funding component that will capitalise the venture’s business plan and provide for future leasing at the property. KKR’s purchase of 1330 Broadway represents the firm’s second office acquisition in the Oakland market.

RXR Realty refinanced its headquarters at 75 Rockefeller Plaza with a $300 million package provided by TH Real Estate, an affiliate of global investment manager Nuveen, which is the investment arm of TIAA. The stack includes a $92 million mezzanine piece, and it refinances two previous JPMorgan Chase loans, totaling $184 million, from Sept. 30 2014 and another $23.7 million loan provided by the bank on Nov 1, 2016. RXR, which controls the 32-story building through a 99-year, triple-net ground lease, completed a $150 million renovation of the building and reopened it in February 2017. RXR leased 40,000 square feet of retail space to American Girl and 185,343 square feet to Bank of America and Merrill Lynch Wealth Management (an arm of the bank) as the anchor tenant of the 623,000 square-foot building.

The transaction is a $110 million loan to a joint venture between Hirschfeld Properties and PCCP for the acquisition of Rosemont Towson, an 828-unit multifamily apartment community located in Towson, Maryland. The property was built between 1967 and 1969 and comprises 35 three and four-story garden-style buildings and one 15-story mid-rise building. The sponsor’s business plan is to reposition the asset by renovating units to a higher quality finish and improving the common areas and amenities. The loan included a future funding component that will help capitalise the unit and common area renovations. Hirschfeld has experience with this type of repositioning and a solid track record in the Baltimore market.

TH Real Estate managed accounts provided a £280 million ($364 million;€310 million) senior ranking development loan for Malaysian based MTD Group to finance the prime development of One Crown Place in central London. Once completed in 2021, the property will be a 370,500 square feet mixed used asset comprised of 136,000 square feet of office space, 7,000 square feet of retail, a 41-bed boutique hotel and members club, and 246 luxury residential units. The development is located in central London’s EC2 on the border of the traditional City office core and trendy Shoreditch areas. CBRE is the development manager on behalf of MTD Group.