Walker & Dunlop Arranges Refinancing of New York City Landmark, Casa Cipriani

Rhea-AI Summary

Walker & Dunlop, Inc., Capital Markets secured a $103 million CMBS loan with Citigroup, J.P. Morgan, and Argentic for the refinancing of Casa Cipriani in New York. The iconic property offers luxury hotel, club, and event spaces, attracting top-tier clientele.

Market Research Analyst

The arrangement of a $103 million CMBS loan to refinance Casa Cipriani highlights a significant transaction within the real estate capital markets sector. The collaboration among prominent financial institutions such as Citigroup, J.P. Morgan and Argentic demonstrates the robust interest in high-profile, luxury real estate assets, particularly in prime locations like New York City. This transaction is indicative of the confidence lenders have in the luxury hospitality market, despite broader economic uncertainties.

The deal also reflects the trend of refinancing as a strategy to leverage favorable loan terms, which can be a critical move for property owners looking to optimize their capital structure. The involvement of Walker & Dunlop, a well-known entity in capital sourcing, underscores the property's strong economic performance and the competitive nature of the financing process. The success of this refinancing effort could signal to the market that there is liquidity and lender appetite for similar high-quality, well-located assets.

Financial Analyst

From a financial perspective, the refinancing of Casa Cipriani with a substantial CMBS loan is a noteworthy event that may impact the valuation and financial stability of the involved parties. The $103 million loan suggests a strong valuation for the property, which could influence comparable property assessments in the area. Investors in CMBS and related securities should be aware of the potential implications such as changes in yield spreads, especially given the property's iconic status and diversified use as a hotel, club and event space.

Furthermore, the transaction may serve as a bellwether for the health of the commercial real estate market in New York City. The ability to secure such financing in a challenging capital market environment could be a positive sign for the market's resilience and future investment prospects. It is important to monitor how this refinancing affects the sponsors' financial leverage and the performance of the underlying loan within the CMBS.

Real Estate Investment Expert

The refinancing of Casa Cipriani, a landmark property with a unique historical significance, underscores the importance of location and asset quality in real estate investment decisions. The property's diverse offerings, including luxury lodging, exclusive membership and event hosting, cater to a high-end market segment that remains attractive to investors and lenders alike.

Investors should consider the long-term implications of such investments in historic properties that have been successfully redeveloped. These assets can command premium pricing and occupancy rates, which contribute to their economic performance. However, the upkeep and preservation of historical details can also entail higher operational costs. The successful refinancing suggests that the market is willing to support such distinctive properties, which may encourage further investments in similar assets.

BETHESDA, Md.--(BUSINESS WIRE)-- Walker & Dunlop, Inc., Capital Markets announced today that it arranged a $103 million commercial mortgage-backed security (CMBS) loan with Citigroup, J.P. Morgan, and Argentic to facilitate the refinancing of Casa Cipriani, a boutique hotel, private members club, and event space located at 10 South Street in New York, NY.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240228832910/en/

Casa Cipriani (Photo: Business Wire)

The Walker & Dunlop New York Capital Markets team, led by Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz, and Sean Bastian, served as exclusive advisors to clients Cipriani, Midtown Equities, and Centaur Properties.

Originally known as the Battery Maritime Building and constructed in 1909 to serve ferries traveling to Brooklyn, Casa Cipriani is a one-of-a-kind, highly visible New York City landmark featuring irreplaceable historical detail. Its unparalleled location, combination of luxury event, dining, hospitality, and social spaces, and iconic architecture, have made it a leading New York City attraction since opening.

The Sponsorship team completed their re-development of the famous property in 2021, delivering three distinct, upscale concepts – a 47-key luxury boutique hotel, an exclusive private members' club, and grand event space – to one of the last prime waterfront development sites in Manhattan.

"Casa Cipriani is a truly irreplaceable asset that has quickly solidified itself as one of the premier hospitality and event destinations within New York City," said Aaron Appel, senior managing director and co-head of New York Capital Markets at Walker & Dunlop. “The quality of the product delivered by the clients, in addition to the outstanding economic performance of the property, resulted in a highly competitive financing process despite the challenges in today's capital markets environment."

In 2023, Walker & Dunlop’s Capital Markets group sourced capital for transactions totaling nearly $12 billion from non-Agency capital providers. This vast experience has made them a top advisor on all asset classes for many of the industry’s top developers, owners and operators. To learn more about Walker & Dunlop’s broad financing options, visit our website.

About Walker & Dunlop

Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States. Our ideas and capital create communities where people live, work, shop, and play. The diversity of our people, breadth of our brand and technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240228832910/en/

Investors:

Kelsey Duffey

Investor Relations

Phone 301.202.3207

investorrelations@walkeranddunlop.com



Media:

Nina H. von Waldegg

VP, Public Relations

Phone 301.564.3291

info@walkeranddunlop.com

 

Source: Walker & Dunlop, Inc.

What is the amount of the CMBS loan arranged by Walker & Dunlop for Casa Cipriani?

$103 million

Who were the lenders involved in the CMBS loan for Casa Cipriani?

Citigroup, J.P. Morgan, and Argentic

What are the key features of Casa Cipriani in New York?

Luxury hotel, private members club, and event space

Who led the Walker & Dunlop New York Capital Markets team for this deal?

Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz, and Sean Bastian

What was Casa Cipriani originally known as and when was it constructed?

Originally known as the Battery Maritime Building, constructed in 1909