Commercial real estate services firm Newmark recently announced that it had arranged a $150 million loan from Deutsche Pfandbriefbank as financing for the office tower at 295 Fifth Ave.
This financing comes as the tower’s comprehensive renovation program approaches completion. Efforts to transform the century-old asset into a world-class office building conclude at an opportune time to capitalize on the post-COVID tenant flight to quality seen across the city.
The 19-story tower, traditionally known as the Textile Building, was built in the early 1900s to be the center of the national home textiles industry. Following the building’s most recent acquisition in 2019, its nearly 80 textile industry tenants relocated elsewhere — most of them within just a few blocks of the former specialty address, spreading out to form a textile makers’ campus in the same neighborhood where buyers have long found them.
While it still dons its iconic, shiny gold loom logo above the main entrance, the full-block property will soon reopen as a highly amenitized modern building that encompasses more than 700,000 square feet of NoMad office space. Current repositioning plans include critical infrastructure systems upgrades, such as: new elevator cores, new window systems, state-of-the-art HVAC and a fire suppression system.
JRM Construction Management began the project with a full gut of the interior and demolition of the top floor. Work included conversion to full-floor, open floor plates; a new, double-height lobby; and a 34,000-square-foot penthouse addition that looks out across the neighboring Midtown South skyline.
The renovation for the trophy office asset also transformed the retail storefronts and added outdoor space, terraces and a new amenity center to the property.
The Newmark team — which worked on behalf of Tribeca Investment Group, Meadow Partners and PGIM Real Estate — was led by Dustin Stolly and Jordan Roeschlaub (vice chairmen and co-heads of the Debt & Structured Finance team), along with Senior Managing Directors Christopher Kramer and Nick Scribani; Director Ben Kroll; and Finance Analyst Holden Witkoff.
“Being able to secure financing for this type of product during this uncertain time speaks to the quality of the collective ownership of the property,” Stolly said.
“Since the pandemic, we’ve seen office users flocking to quality assets to attract and retain their talent,” Roeschlaub added. “The recent top-of-the-line modernization at 295 Fifth Ave. will make it a destination property for the city’s office tenants.”