Posted Jun 4, 2020, 4:10 PM
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New Yorker for life
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Join Date: Jul 2001
Location: Borough of Jersey
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https://therealdeal.com/2020/06/04/k...swedish-bonds/
Klövern, GDS finance 417 Park Ave with $100M in Swedish bonds
Partners bought out 29 co-op unit holders for $184M in February
TRD New York
Jun. 04, 2020
Quote:
Klövern AB and GDS Development Management are set to finance their latest acquisition by tapping an uncommon source of capital for New York real estate: the bond market in Klövern’s home nation of Sweden.
The developers have secured a $100 million mortgage for the co-op building at 417 Park Avenue in Midtown East, according to property records filed Wednesday. The lender named on the document, Nordic Trustee & Agency AB, is acting as agent on behalf of Klövern’s bondholders in connection with $100 million in senior secured bonds, the document says.
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Quote:
Klövern and GDS acquired the property for $184 million in February, buying out all 29 co-op unit owners, and are likely to take advantage of the Midtown East rezoning to build a larger office building. At the time of the acquisition, Klövern noted in a press release that it was “initially financed mainly with bank loans.”
The 417 Park site marks Klövern’s fourth acquisition in New York, all of which have been in partnership with GDS. Two ongoing developments, at 1245 Broadway and 322-326 7th Avenue, are now expected to be completed one quarter later than planned given the coronavirus disruption, according to Klövern’s latest interim report. The start of construction on a third project, at 118 10th Avenue, has been pushed back from this quarter to next year.
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