HFF secures financing and joint venture equity totaling $55.2M for 240 West 35th Street in Manhattan’s Garment Center

NEW YORK, NY – The New York office of HFF (Holliday Fenoglio Fowler, L.P.) has secured financing and joint venture equity totaling $55.2 million for 240 West 35th Street, an 18-story office building in Manhattan’s Garment Center. (Above centered photo)

HFF director Steven Klein (top right photo) and senior managing director Mike Tepedino (top left photo) worked on behalf of Hidrock Realty, Inc. to arrange the $41.2 million, senior secured financing through HSH Nordbank.

Affiliates of Meritage Properties provided $14 million in joint venture equity. Proceeds are being used to acquire, renovate and reposition the property.

Originally built in 1924, 240 West 35th Street has 162,044 square feet that is fully leased to 37 tenants. The property is located on 35th Street between 7th and 8th Avenues in the Garment Center of Manhattan. Ten subway lines, a PATH station, Penn Station and the Port Authority are within blocks of the property.

“The venture between Hidrock Realty and Meritage Properties brings new ownership to this asset with significant experience in operating, renovating and managing Class B buildings in the Garment Center,” said Klein. “We would expect this strategic partnership to successfully reposition 240 West 35th Street while simultaneously enjoying the overall redevelopment of the surrounding sub-market.”

HFF (NYSE: HF) operates out of 18 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry.

HFF offers clients a fully integrated national capital markets platform including debt placement, investment sales, structured finance, private equity, note sales and note sale advisory services and commercial loan servicing. http://www.hfflp.com/.

CONTACTS:

Steven J. Klein, HFF Director, 212 245 2425, sklein@hfflp.com

Laurie Fish McDowell, HFF Associate Director, Marketing, 617 338 0990, lmcdowell@hfflp.com