Flatiron property scores $155M CMBS loan

Williams Equities scored a refinancing for a century-old retail and office property in the Flatiron District.

The two interconnected cast-iron buildings at 28-40 West 23rd Street received a five-year, $155 million loan from Citi Real Estate Funding. The debt was packaged into commercial mortgage-backed securities to be sold to investors. It replaces a $140 million CMBS loan.

Williams is planning several upgrades to the 12-story, 577,000-square-foot Class B property, including a roof deck and triplex penthouse office suite, according to a press release from the firm. The building dates back to 1911.

Anchor tenant Home Depot recently signed an extension at 40 West 23rd Street. It occupies the ground floor, lower level and mezzanine of the former Stern Brothers department store. Office tenants include credit card company Ramp and Estee Lauder brand Aramis.

The property is in the historic Ladies’ Mile, a 28-block span of lower Manhattan that was developed as a high-end shopping district in the late 1800s and early 1900s.

Ackman-Ziff’s Simon Ziff and Russell Schildkraut represented Williams Equities in the deal. Citigroup’s Joe Dyckman represented the lender.

A Williams spokesperson declined to comment on the occupancy rate or asking rent for the buildings.

Williams Equities managing principal Michael Cohen is also Tri-State president of the New York City office of Colliers International. Williams formerly operated as GVA Williams, which Cohen led. GVA Williams’ principals sold its brokerage services to First Service in 2007, at which point it was rebranded as Colliers International.