Metro Loft Finalizes Recap of 180 Water Street

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Nathan Berman’s Metro Loft sealed the deal on its recapitalization of one of its most prominent conversions.

Metro Loft secured a five-year, $280 million mortgage to refinance its debt at 180 Water Street in the Financial District, Crain’s reported. The Deutsche Bank loan carries a 6.4 percent fixed interest rate, according to Moody’s.

To avoid a looming $365 million debt maturity, Metro Loft also brought in additional investors. Sentuy Realty and 60 Guilders bought the property’s mezzanine loan for $80 million and invested an additional $40 million in the building.

Metro Loft is still an owner of the property, though Berman didn’t disclose what his stake in the building was at this point. In May, it was reported that 60 Guilders and Sentry would acquire a combined 50 percent interest in the property.

In April, the special servicer of a $265 million securitized loan filed a pre-foreclosure action against Metro Loft, which came after a November KBRA report revealing Metro Loft was nearing default on its mortgage.

After the pre-foreclosure action was filed, a representative of the developer said it would be “bringing in a new partner to pay off the debt.” The pre-foreclosure case was expected to be dropped when the recap was finalized, though it’s unclear if that’s happened yet; Metro Loft did not immediately respond to a request for comment from The Real Deal.

Berman paid $450 million in 2017 to buy Vanbarton Group out of the rental property. That was three years after Metro Loft purchased a minority stake in the property and two years after the partners launched a $100 million conversion.

The 573-unit, 460,000-square-foot conversion opened in 2017. Occupancy is at 98 percent. Amenities include a 1,200-square-foot courtyard and an indoor pool.

Apartments are leasing for an average of $5,000, according to Moody’s, and the building generated $17 million in net operating income last year. The property was valued at $378 million in an appraisal two months ago.

— Holden Walter-Warner