Narrative
Full Description
Project narrative
On or around September 21, 2018, a syndicate of four lenders — New York branch of the Bank of China (BOC), China Merchants Bank, Wing Lung Bank, Ltd. (CMB Wing Lung), and Singapore-based United Overseas Bank — entered into a $395 million USD syndicated loan agreement with an unspecified special purpose vehicle — a joint venture of four developers: New Valley, LLC, a wholly-owned subsidiary of Vector Group Ltd.; Bizzi & Partners LLC, the United States arm of the international real estate development firm; the Carlton Group, an international real estate investment banking firm; and China Cinda Asset Management, a state-owned Beijing-based private equity investment firm — for the refinancing and construction of the 125 Greenwich Street Property in Manhattan, New York City, New York. In total, the financing package amounted to $473 million USD as China Cinda Asset Management provided a $78 million USD junior mortgage. This loan was secured by a $395 million USD senior mortgage against 125 Greenwich St. The proceeds of the facility were used to continue construction on the property, for which financing was uncertain prior to the loan. Record ID#107400 captures Bank of China's contribution to the facility. Record ID#107401 captures CMB Wing Lung's contribution. Record ID#107402 captures China Merchants Bank. Record ID#107428 captures China Cinda Asset Management's contribution to the facility, the $78 million USD junior mortgage. Then, in March 2019, the project stalled due to a lack of funding. BOC, the senior lender on the deal, deemed that the project had not exhibited the required proof of concept, and recused themselves as funders. The developers defaulted on the loan, and the syndicate filed to foreclose on the property. In the July 2019, real estate investment company BH3 Management, acquired the senior mortgage from United Overseas Bank of Singapore, collateralized against (secured by) the 125 Greenwich property. In early 2020, BH3 Management sold the loan to Fortress Investment Group for approximately $230 million. After the tower was fully constructed, sales of the condos were paused, but resumed in March of 2024. Bizzi & Partners first acquired the property in 2014 from Steve Witkoff and Fisher Brothers for $183 million USD, and partnered with Cindat Capital Management and New Valley on the project. The 88-story, 912-foot tall residential condominium tower is located at 125 Greenwich Street, sometimes known as 22 Thames Street, located in the Financial District of lower Manhattan. The property has 273 residences. The tower was designed by Rafael Vinoly, a world-renowned architect.
Staff comments
1. The individual contributions of the four lenders to this $395 million USD syndicated portion of the facility are unknown. For the time being, AidData has estimated the contribution of BOC by assuming that each lender contributed an equal amount ($98,750,000 USD) to the loan syndicate. 2. Reed Smith represented United Overseas Bank in the transaction.