These are Manhattan’s biggest home loans in May

A photographic illustration of the Yorkshire Towers, Lexington Towers, Fifty Hotel & Suites and 475 Fifth Avenue (Google Maps, LoopNet, iStock)

Two luxury rental properties on the Upper East Side brought in about 40% of the money from last month’s 10 biggest Manhattan home loans.

Rental properties also attracted heavy borrowing in the West Village, with renters paying a record average of $4,000 in May to live in the city’s central borough.

Manhattan’s 10 largest home loans recorded in May totaled $1.5 billion, down from April’s $1.7 billion and $1.8 billion a year ago.

Here are more details on the loan packages, ranked among the most important:

1. Cha-ching | $714 million

Chetrit Group and Stellar Management secured $714 million in CMBS debt to refinance and renovate two luxury rental properties on the Upper East Side: Yorkshire Towers at 305 East 86th Street and Lexington Towers at 160 East 88th Street. Bank of Montreal, Starwood Mortgage Capital and Citi Real Estate Funding issued $539.5 million in senior and subordinated loans. There is also $174.5 million in mezzanine debt.

Chetrit and Stellar will use the loan to extract $55.3 million in equity, according to Morningstar DBRS. The CMBS debt has a 10-year term, bearing interest only, with a rate of 3.04% for the non-mezzanine notes and a weighted average rate of 7.26% for the mezzanine notes.

The funding replaces a $550 million loan from Natixis and UBS in 2017. Chetrit and Stellar bought the properties for nearly $500 million in 2014.

2. Discounts on rooms | $239 million

Sonesta International Hotels has secured $239 million from Ramsfield Hospitality Finance and funds managed by CarVal Investors to acquire The Benjamin, Shelburne Hotel & Suites, Gardens Suites Hotel and Fifty Hotel & Suites.

Sonesta has purchased the four hotels for $324 million from Denihan Hospitality Group, which will retain a minority stake in the properties. Denihan refinanced the four hotels with a $320 million loan from Goldman Sachs in 2016, suggesting a decline in value of around 25% assuming the same loan-to-value ratio.

3. Old School | $180 million

RFR Holding and Aby Rosen’s Penske Media Corporation secured $180 million from Citibank and JPMorgan Chase to buy 475 Fifth Avenue for $290 million, or about $1,315 per square foot.

Penske, which publishes Variety and Rolling Stone and is headquartered in the building, contributed 50% of the capital for the purchase. Total financing for the acquisition was $260 million, with PCCP providing mezzanine debt, Commercial Observer reported.

4. Dreaming in Uptown | $79 million

Taconic Partners, Nuveen Real Estate and Flatiron Equities have received $78.8 million from Ares Commercial Real Estate to redevelop 309 East 94th Street and 324 East 95th Street in Yorkville. The three companies purchased the Upper East Side properties, with 205,000 square feet of development potential, for $70 million in late 2021. Plans to dig test pits at the site have been filed with the Buildings Department in May.

5. Shopping at the Village | $64 million

John Usdan’s Midwood Investment and Development has secured $63.5 million from Metlife Real Estate Lending to buy Candela Tower, a 158-unit apartment building at 56 Seventh Avenue in the West Village, for $102 million. Blackrock was the seller.

6. Fruitful financing | $60 million

Jeffrey Gural’s GFP Real Estate has received $60 million, including $4 million in new funds, from Apple Bank to refinance 200 Varick Street, a 490,000 square foot office building in Hudson Square. The loan replaces debt held by Wells Fargo. The building is 91% leased, Commercial Observer reported.

7. Shovel Ready | $41 million

Isaac Tshuva’s Elad Group has landed $40.9 million from Valley National Bank to buy a development site at Third Avenue and East 74th Street in Lenox Hill, where plans are approved for a building 33-story residential with only 47 units. A joint venture of Premier Equities, Continental Ventures and Thor Equities has sold the site at 1299 Third Avenue, where the 140,000 square foot building is planned, for $61 million.

8. Artistic offer | $40 million

JMC Holdings received $40.2 million from Granite Point Mortgage Trust to refinance the Interior Arts Building, at 306 East 61st Street in Lenox Hill. The funds replace debt held by Square Mile Capital. JMB bought the 58,000 square foot building for $47 million in 2018.

9. Payment for parking | $40 million

Alf Naman’s eponymous company borrowed $39.5 million from First Citizens Bank to buy a 40,000 square foot parking lot at 738 Greenwich Street. West Village Houses, a 42-unit low-rise residential co-op championed by urban preservationist Jane Jacobs, sold the garage for $64.2 million.

The co-op had rejected an offer from Madison Equities in 2017 to buy and raze all 420 co-op units. Proceeds from the garage sale, made possible by an exemption to the city’s off-street parking rules, were used to pay down debt and fund major repairs.

10. Back to the office? | $36 million

Steven Mashaal’s Skyway Development has received $36 million from the Metropolitan Commercial Bank to refinance a 77,000 square foot office building at 30 West 21st Street in Flatiron. Skyway bought the building for $38.5 million in 2013. WeWork is a tenant on the second floor.