September 12, 2017
Jamestown Properties has borrowed $145 million from Capital One to refinance 88 Leonard St., a 21-story tower with 352 apartments in Manhattan’s Tribeca neighborhood.
A bond deal made the transaction work. Capital One Municipal Funding bought $112.5 million in tax-exempt bonds and Capital One, N.A. purchased $32.5 million in taxable bonds that were issued by the New York State Housing Finance Agency.
“Increasingly, investors are looking at direct bond purchases as a vehicle for refinancing,” said Paul Kesicki, senior vice president for Capital One’s Commercial Real Estate Group.
When Jamestown bought its leasehold interest in the property in 2016, it assumed the existing bond financing, which at the time totaled $132 million. As part of this refinancing, Jamestown increased the taxable bond component by $13 million.
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