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Category ArchiveJ.P. Morgan Chase

Gay Men’s Health Crisis Takes 110K SF for New Garment District HQ

Nonprofit HIV/AIDS health care provider Gay Men’s Health Crisis (GMHC) is moving its headquarters to 307 West 38th Street in the Garment District, where it has agreed to take 110,000 square feet of office space at the George Comfort & Sons-owned building.

GMHC will occupy six floors—the second through fifth, seventh and eighth levels—at the 20-story, 300,000-square-foot property between Eighth and Ninth Avenues, the organization announced on Wednesday. GMHC plans to move into its new offices by the end of July from its current location at Brookfield Property Partners5 Manhattan West on the Far West Side, where it has operated since 2010 in a 129,000-square-foot space comprising the entire sixth floor.

Rents in the deal were not immediately clear. Savills Studley’s Ira Schuman and Stephan Steiner represented the tenant in the transaction, while George Comfort & Sons’ Se Kyung Kim handles leasing in-house for 307 West 38th Street. A spokeswoman for Savills Studley declined to comment, while a spokesman for George Comfort & Sons did not immediately provide comment.

The Real Deal first reported news of the lease.

In a press release, GMHC said the new space will “be flexible enough to allow for future growth” and will make its services “even more accessible to its more than 12,000 annual clients living with or affected by HIV and AIDS.” The nonprofit, which was founded in 1982 as the world’s first HIV/AIDS service organization, provides treatment and prevention services as well as research and advocacy work “with the goal of ending AIDS as an epidemic.”

“We’re excited to move our headquarters to a more central, accessible location that will also better accommodate our operations and the services we offer,” GMHC Chief Executive Officer Kelsey Louie said in a statement, adding that the new offices “will have an efficient, welcoming layout.”

The West 38th Street location will include a dining room for the organization’s clients; rooms dedicated to counseling, wellness services and group meetings; substance abuse and mental health clinics; and staff offices. GMHC will also have access to a rooftop space that will be able to accommodate events.

George Comfort & Sons refinanced the Garment District property last year with a $70 million loan from J.P. Morgan Chase, as Commercial Observer reported in December.

Source: commercial

TF Cornerstone Lands $144M Wells Fargo Refi for 45 Wall Street

Wells Fargo has provided TF Cornerstone with a $144 million Freddie Mac financing package to refinance the developer’s residential skyscraper at 45 Wall Street, according to property records filed today with New York City Department of Finance.

The loan, which closed on Dec. 15, replaces a $134 million Fannie Mae loan that was assigned to J.P. Morgan Chase on Nov. 30. Wells Fargo’s $144 million Freddie Mac refinance paid that loan off, and the bank provided an additional $9.8 million in proceeds, records show.

buildingphoto 55 TF Cornerstone Lands $144M Wells Fargo Refi for 45 Wall Street
Entrance to 45 Wall Street. Courtesy: CoStar Group.

J.P Morgan provided a modification in the form of a first mortgage in order to give the borrower time to refinance its maturing Fannie Mae debt—which was then assigned to Wells Fargo two weeks later.

The 27-story, 493,187-square-foot residential high-rise building—located between William and Broad Streets in the Financial District—was built in 1958 and is comprised of 435 residential and five commercial units, according to PropertyShark. Eight of the residential units are vacant, according to TF Cornerstone’s website. Monthly rents at the property run from $2,845 for studios to $6,849 for three-bedrooms.

The building’s use was converted from office to residential in 1996, and is the former headquarters of Atlantic Insurance Company, according to CoStar Group. Chase Bank and Tourbillon are the building’s largest commercial tenants, occupying 8,341 square feet and 2,952 square feet, respectively.

Representatives for Wells Fargo and for TF Cornerstone did not provide comment before publication. 

Source: commercial

JP Morgan Chase Boosts Commercial Real Estate Team With Key Hires

J.P. Morgan Chase’s hiring of Kurt Stuart as the new head of commercial term lending (CTL) for the northeast region was part of a more extensive hiring spree. The bank also recently added Winston Fant, Michelle Herrick and Julie Thick to its payroll.

As first reported by Commercial Observer, Stuart recently replaced Chad Tredwaynow co-head of real estate banking (REB)—in managing the northeast region’s multifamily lending strategy and loan originations. Stuart joined J.P. Morgan Chase in 2015 as a commercial term lending region manager in Southern California and recently moved to the Big Apple to lead a 150-person team covering New York, Boston and Washington, D.C. “We’re in three markets in the North East,  and we want to be the lender of choice in all three of them,” Stuart told CO in an interview last month.

Dallas-based Fant will lead commercial real estate treasury services in a newly created role, reporting to Al Brooks, the head of J.P. Morgan Chase’s commercial real estate business. Previously, Fant was the co-head of commercial real estate deposit & payment solutions at U.S. Bank.  

“We continue to build a team of exceptional people who are experts in real estate and are driven by our clients’ success and by transforming communities,” Brooks said in prepared remarks. “It’s our goal to provide certainty of execution and exceptional service to our clients in any cycle.”

Herrick has been named market manager for REB central region, reporting to Tredway. Previously, Herrick was a senior client manager at Bank of America Merrill Lynch.

“Commercial Real Estate companies deserve products that will help them manage their cash flow more efficiently and simply,” Tredway told CO. “We’re investing in solutions and services to provide our clients with an enhanced experience and a more convenient way for them to manage their payments and invoices.”

Thick has been hired to lead J.P. Morgan Chase’s REB subscription lending platform, working with institutional investors and fund sponsors on strategic real estate investments. Based in Chicago, Thick reports to Priscilla Almodovar, co-head of REB with Tredway.

“Top talent wants to be on a winning team,” Almodovar said. “We’re building on this momentum by continuing to hire seasoned real estate experts that will bring tremendous value to our business, clients and communities.”

Source: commercial

A Face to Chase: Kurt Stuart is JP Morgan Chase’s New Head of CTL Northeast

Kurt Stuart has had an exciting ride of late. The 36-year-old, just slightly outside of the cut-off for Commercial Observer’s 25 Under 35 list, is a father of 2-year-old triplets and just moved from Southern California to New York City to lead J.P. Morgan Chase’s commercial term lending [CTL] business in the Northeast. He replaces Chad Tredway, now co-head of the bank’s real estate banking business with Priscilla Almodovar. Stuart undoubtedly has big shoes to fill, but Tredway has complete confidence in his successor. “I am thrilled,” Tredway told CO. “Kurt has successfully proven himself as a leader. His ability to cultivate exceptional employees, provide guidance in the community and offer excellent service to our clients will help us maintain Chase’s leadership position in the market.”

Now, it’s time to get down to business and for Stuart to get up to speed on New York City’s many market nuances. He has his own way of educating himself on the  location of the bank’s assets that would make Forrest Gump proudby putting his running shoes on and jogging around them.

Commercial Observer: Are you from California originally?

Stuart: I actually grew up in the suburbs of Chicago. My mother was in education, and my father worked as an accountant for the state government. They both worked really hard so that my brother and I had ample opportunity to explore a wide variety of activities. I grew up playing sportsI played basketball, soccer and baseball through high school. I also started piano lessons when I was 3. I played the violin in grade-school orchestra, and I played the guitar.

Do you still play?

A little, yes. When I have time.

Do you think those childhood activities helped to shape you as an adult?

I think the diversity helped to develop my sense of curiosity, and it helped me to realize that you can do anything you want if you’re willing to work at it. I grew up with that value set, went to University of Illinois in Chicago, not a big school, and graduated with a finance degree from there.

How did you get into real estate?

During my sophomore year [in college], I was in an internship [at GE Capital], and one of my colleagues came to me and said, “I challenge you to do the Chicago marathon in the fall.” The one thing I didn’t do [from a sports perspective] was run cross country. He told me, “There’s no way you’re going to finish, you’ve never run a race before.” Like any typical 20-year-old kid I thought I was invincible and could do anything, so I said, “Not only am I going to finish, I’m going to beat you.” Which was an ambitious goal. I remember walking out of the room and immediately Googling, “How to train for a marathon.”

Why that piqued my interest in real estate was, starting the next morning, I said, “O.K., every morning I’m going to pick a direction and just run.” And I did. It ended up being a great way to learn the neighborhoods. You see how they change on a block-by-block basis and how real estate plays a role in transforming communitieswhich I found fascinating.

Did you beat your colleague?

I did.

How long were you with GE?

The internship I mentioned was supposed to be a three-month gig. At the end of those three months, I somehow finagled my way into another two years with them and was offered a role in GE’s financial management program post-graduation, which is an intense leadership program where you rotate around its businesses every six months. A colleague at the time convinced me to work in GE’s originations group in L.A. I was super excited about the role, but I started in July 2007, so at the peak of the last real estate crisis I was going to go be in originations, focused on high-leverage bridge debt on transitional assets. My timing was awful.

Needless to say, that didn’t last for long, and in 2009 our business changed strategy, and I joined our asset management team. For the next four years I was doing loan sales, asset sales and restructuring debt. I learned more during that time than I probably would have done in 10 years in an upcycle. It’s a tremendous crash course on what can work and [what] doesn’t work in real estate.

What was the most valuable lesson you learned?

A mentor once shared the Nelson Mandela quote with me, “It is better to lead from behind and to put others in front, especially when you celebrate victory when nice things occur. You take the front line when there is danger,” and that became very impactful during the financial crisis. From a leadership perspective, danger in the context of the business world is uncertainty and during the financial crisis there was boatloads of uncertainty. So, I got to see how leaders adapted their style and led their teams through that challenging time. I was in that role until 2013, when our business had pivoted back to growth mode.

Enter J.P. Morgan Chase?

Yes. I had a friend who introduced me to several of the leadership team members within the commercial real estate business here. I’d explored several opportunities, but I was always very drawn to the people I’d met at Chase. They’d built up a multifamily business that turned out to be the No. 1 lender in the country, but they were humble, and so we shared a similar value set. I knew after my first interview they were people I wanted to work with and a month later I had one final interview. It was seven days after my wife [Sarah] had given birth to our [triplets]. I remember telling my wife, “I hope that my excitement shines through, given the fact I haven’t slept in a week.” Fortunately, it did. They had an opportunity to lead the multifamily team in Southern California, and I was fortunate enough to be offered it.

How did the opportunity to lead the CTL business in the Northeast come about?

What kick-started it was Chad Tredway and his team building a tremendous presence out here. That success allowed him to take on some additional challenges within the firm, and I was lucky enough to be surrounded by a great team in California. The success of those two things allowed me this opportunity.

How do you think East Coast lending will differ from West Coast lending?

The good news is that investors invest and borrowers borrow for the same reasons in California as they do in New York. For me the learning curve consists of, one, as a leader, positioning my teams here to win; two, continuing to foster and grow relationships with some of the great clients we have in the Northeast; and three, learning the nuances of the submarkets. I’m going to bury myself in market reports and talk to market participants, but I plan to learn that the same way I learned the neighborhoods of Chicago.

By running around them?

Absolutely. There’s a lot of value in a good pair of running shoes. This morning I took an Uber up to the Bronx and ran 15 assets that we have up there. I did the Upper East Side today and saw six assets, and I’m going to do the East Village tomorrow.


20170920 20170920  dsc7963 edit final web A Face to Chase: Kurt Stuart is JP Morgan Chases New Head of CTL Northeast
Kurt Stuart. Photo: Robert Paul Cohen for Commercial Observer

What’s your primary focus as the new head of CTL?

Our commercial term lending business in multifamily is largely focused on workforce housing. We’re in 10 markets around the country, and they all have similar characteristicshigh barriers to entry, high cost of housing and a very large renting cohort. We focus generally on smaller balance loans, our average loan size is around $2.5 million to $3 million. Not to say we can’t do larger loans, but based on the client base we focus on that’s what we cater to.

Your team has grown from 28 to 150 with the move, how do you feel about that?

Leadership for me is a privilege, and whether that’s one person or 150 people I keep in mind that my  success as a leader is ultimately determined by the success of those around you. So, my biggest priority in this role is to find ways to help my team succeed.

Where in the real estate cycle are we now?

It’s hard to pinpoint what inning we’re in, but ultimately we’re not focused on where we are in the cycle but rather on building the right capabilities so we can continue to deliver for clients throughout any point in it. In terms of the lending market today, it’s still pretty healthy.

What are your goals for the CTL business?

The near-term goals are to build on the great momentum that we’ve had here. In the long-term, our goal is pretty singular. We’re in three markets in the North EastNew York, Boston and D.C. and we want to be the lender of choice in all three of them. We’re going to do that by fostering a culture that is absolutely obsessed with how we service our clients. And then we’re going to arm our sales teams with a product that is market-leading in the sense that it delivers on two fundamental needs of clientsspeed, and certainty of execution.

Chad Tredway told us that J.P. Morgan Chase places a lot of value on its young professionalswhat do you think that says about the bank?

The bank invests in talent, and we’re going to carry that through in the CTL business as well. Our leadership is focused on people that have good ideas and bringing those ideas to life. They’re going to continue to invest in folks who want to drive those ideas forward to move the business forward.

On a personal level, what do you want to accomplish by the year’s end?

A lot of morning runs around the neighborhoods [laughs]. And getting out there and learning more about our clients and their needs and how we can better service them.

Do you have a mentor?

I have several, which is a great problem to have. Alfred Brooks [head of J.P.Morgan Chase Commercial Banking’s commercial real estate business], Ed Ely [head of Chase commercial term lending] and Greg Newman [California area manager of multifamily lending for Chase] have been instrumental in helping me, and Chad Tredway of course.

Do triplets run in your family?

No, just a stroke of luck. They rule the roost.

Would you be happy if they ended up in real estate?

It’s a little early to tell what they will be when they grow up. Right now we’re focused on getting them through the living room without finding the knife drawer [laughs]. I just want my kids to find something they’re passionate about, and be really good at itif they do that I’ll be happy.

What’s your favorite thing about New York so far?

My favorite thing is also my least favorite thing. There’s a lot of good food here so you have to watch your waistline.

Source: commercial

J.P. Morgan Inks 305K-SF 5 Manhattan West Deal to Expand Tech Arm

J.P. Morgan Chase has signed a 15-year, 305,000-square-foot lease at Brookfield Property Partners5 Manhattan West to triple its offices in the building, a spokesman for the landlord said.

The bank’s technology team, known as FinTech, is expanding from its entire 123,000-square-foot ninth floor offices at the property between Ninth and 10th Avenues (with an alternative address of 450 West 33rd Street) to a footprint of 428,000 square feet.

J.P. Morgan has occupied space in the 16-story structure since 2015 and had been working on the deal for the top three floors, as Commercial Observer previously reported. The asking rent for the new space was in the $90s per square foot, CO noted in April.

Since moving into the building two years ago, the tech arm has grown, which led bank executives to seek more space, according to The Wall Street Journal, which reported on the deal closing. J.P. Morgan expects to have 2,000 to 2,500 employees at the building, the newspaper noted.

A spokesman for Brookfield did not immediately respond to a request for comment.

The 1.8-million-square-foot Brutalist-styled concrete structure was known as one of the “ugliest buildings” in the city until Brookfield renovated it into an all-glass building, as CO reported. Architect Joshua Prince-Ramus of REX did the makeover. The property is part of Brookfield’s five-building, approximately 7-million-square-foot development called Manhattan West.

Cushman & Wakefield’s Bruce Mosler, Josh Kuriloff, Rob Lowe, Ethan Silverstein, Matthias Li and Whitney Anderson represented Brookfield. A spokesman for C&W did not immediately return an inquiry seeking comment. It was not clear which broker represented J.P. Morgan, and a spokeswoman for the company did not answer CO’s questions immediately.

E-commerce giant Amazon is also considering a 350,000-square-foot office deal at 5 Manhattan West, as CO reported in April.

Since its renovation, 5 Manhattan West has attracted other big tenants, including advertising company R/GA and Whole Foods Market.

Source: commercial

Alamo Drafthouse Heads to the Financial District

After announcing an outpost at The Boulevard on Staten Island earlier this month, Alamo Drafthouse is prepped to sign a deal for its third New York City cinema at 28 Liberty Street in the Financial District.

The Austin-based chain is close to inking a lease for a 40,000-square-foot, 10-screen theater in the base of Fosun Property Holdings’ landmarked tower, The New York Post reports. The 28 Liberty location will offer up to 600 seats and 20-foot ceilings. It’s expected to open in 2018 on the building’s third level below the ground floor.

Asking rent for Alamo’s space wasn’t immediately clear, but rent for the below-ground retail floors reportedly hovers around $100 per square foot, according to the Post. The theater will be the second movie house in the neighborhood that serves upscale food and drinks during films, following on the heels of iPic Theaters, which opened at South Street Seaport last fall.

Alamo opened its first New York City theater at City Point in Downtown Brooklyn last year.

Several tenants have rented space in the office portion of the building in the past year, including the New York State Attorney General’s office, Milbank, Tweed, Hadley & McCloy, Ironshore Holdings and JLL. Hospitality mogul Danny Meyer is also partnering with Fosun to open a $30 million restaurant, bar, and event space on the top floor, the Post reported in March.

Newmark Grubb Knight Frank’s Jeffrey Roseman and Ross Kaplan rep the landlord, and a spokesman for the brokerage didn’t immediately return a request for comment.

Fosun purchased the 1961 office building, formerly known as One Chase Manhattan Plaza, from J.P. Morgan Chase for $725 million in 2013. The Chinese firm plans to spend $160 million renovating the 2.2-million-square-foot, 60-story property, as Commercial Observer previously reported. The revamp will add 200,000 square feet of retail to the ground through the third basement floors.

Source: commercial