ICBC contributes to a $349.5 million USD syndicated loan for the 787 Eleventh Avenue Renovation Project

Project narrative

Circa November 2016, a syndicate of three lenders — the Industrial and Commercial Bank of China (ICBC), Blackstone Real Estate Debt Strategies (BREDS), and Goldman Sachs — entered into a $349.5 million USD construct loan agreement with an unspecified special purpose vehicle — a joint venture between private real estate firm The Georgetown Company LLC and American hedge fund Pershing Square Capital Management, L.P., controlled by American billionaire Bill Ackman — for the 787 Eleventh Avenue Renovation Project. The proceeds were to be used by the borrower to finance the expansion and renovation of 787 Eleventh Avenue, a building on the entire block front along Eleventh Avenue between West 54th and West 55th Streets, in Hell's Kitchen, Manhattan, New York City, New York in the Far West Side across the street from Dewitt Clinton Park and a block from Hudson River Park and to replace (refinance) a $200 million USD acquisition loan from J.P. Morgan Investment Management used to buy the property for $255.5 million USD from Ford Motor Company in July 2015. The renovation sought to turn 787 Eleventh Avenue, a historic 100-foot-tall, 460,000 square foot building originally constructed in 1929 as an automobile warehouse, repair shop, and showroom that was the headquarters of the Packard Motor Company, into an eight-story building by adding a two-story, 60-foot tall addition, adding 86,000 square feet of commercial area to the building, giving modern offices on five floors, a two-story penthouse on the top, floor-to-ceiling windows, exposed brick, large columns, 24-foot high ceilings, and a 12,000-square foot rooftop deck with a tennis court (requested specifically by Bill Ackman, a known lover of tennis) and private terrace, while retaining automotive showroom space on the five floors. Rafael Viñoly Architects was charged with the expansion and renovation design. TEI Group won a contract to install five machine-room-less, two geared overhead, and one hydraulic elevator. The project included celebrity investors such as LeBron James, Arnold Schwarzenegger, and Jimmy Iovine. As of January 2019, 90% of the space was leased, with commercial tenants including Spaces, Dwight Capital, and Pershing Square Capital and automotive dealerships Jaguar Land Rover and Nissan/Infiniti at the ground level. Redevelopment was completed around January 2019. In January 2019, Société Générale S.A. (SocGen) provided a $410 million USD loan that was used to refinance the $349.5 million USD loan.