Jacob Chetrit refinanced his half-empty Third Avenue office building with a $ 320 million loan that gives him some extra cash to bring in a new tenant.
His organization Chetrit secured the 850 Third Avenue funding from private equity firm HPS Investment Partners, people familiar with the funding told The Real Deal.
What Tenants Pay at Chetrit’s 850 Third Ave
The financial package for the 617,000 square foot building includes future financing of $ 30 million that Chetrit can leverage to renovate the empty space and market it to a new tenant.
Representatives of the Chetrit Group and HPS Investment Partners could not be reached immediately for comment. Ironhound Management has secured the funding. A representative for the company declined to comment.
Jacob Chetrit runs his business Chetrit Organization with his son Michael.
Chetrit Organization bought the 21-story Midtown East building for $ 422 million in 2019 from Chinese group HNA, which was looking to divest itself of assets to deal with a mountain of debt hanging over the company.
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By the time Chetrit had purchased the building, however, its largest tenant, Discovery Inc, had already planned to relocate its headquarters and relocate. The occupancy rate fell from around 91 percent to 57 percent.
Chetrit fell behind on his $ 177 million securitized mortgage and missed the loan due date. Chetrit was facing a UCC foreclosure, but the new funding from HPS allowed her to repay the loan.