#United States #New York #Harbor Group International #360 Lexington #AmTrust

Harbor Group International's Successful Equity Investment in Midtown Manhattan

Harbor Group International, LLC (HGI), a leading private real estate investment and management firm, has recently announced a significant milestone: the early payoff of its structured equity investment in the prime office building located at 360 Lexington in Midtown Manhattan. This impressive venture highlights HGI’s commitment to fostering flexible capital solutions and adapting to the ever-evolving real estate landscape.

Overview of the Investment

In November 2024, Harbor Group International made the initial investment in this Class A office building owned by AmTrust RE. The robust performance of the property, characterized by strong demand and escalating leasing activities, enabled HGI to receive a complete early repayment. This strategic maneuver underscores HGI's focus on partnering effectively with stakeholders and enhancing their investment strategies.

According to Mike Nathan, Chief Investment Officer, Office at HGI, their approach to office lending is deeply rooted in collaboration and adaptability. "We work closely with our partners to understand their goals and structure solutions that help them succeed. This transaction is a great example of how collaboration can lead to successful outcomes for everyone involved," he noted.

Insights into 360 Lexington

Situated on the corner of 40th Street and Lexington Avenue, mere blocks south of Grand Central Terminal, 360 Lexington is a prominent feature of the Manhattan skyline. The building boasts an impressive total area of 269,148 square feet, which includes 256,184 square feet of office space, ground-floor retail, and additional storage areas.

The building has undergone significant renovations, including updates to its lobby, entrance, and elevator cabs, showcasing stunning views across New York City. A diverse roster of tenants occupies the premises, comprising notable firms from sectors such as banking, finance, hospitality, professional services, and legal services.

Long-Term Value Creation

Jonathan Bennett, President of AmTrust, commented on the strategic importance of this transaction. He emphasized the opportunities within the office sector for owners and lenders who are prepared to invest in quality and modernization. Midtown Manhattan is recognized as one of the most dynamic office markets, and HGI's support has been crucial in attracting tenants and bolstering long-term property value.

This transaction illustrates HGI's expertise in asset management and its capacity for sourcing, structuring, and overseeing investments to achieve positive outcomes. Over the last two decades, the firm has established itself as a key player in both the multifamily and office real estate sectors. Recently, HGI also provided a senior mortgage for the refinancing and capital improvement projects of 1250 Eye Street in Washington, D.C.'s East End.

Conclusion

Overall, HGI’s successful realization of its structured equity investment in 360 Lexington marks a substantial achievement, reflecting the firm’s strategy in navigating the complex real estate market. As they continue to adapt to evolving industry needs, their commitment to quality investments will play a vital role in shaping the future of urban office spaces.

About Harbor Group International: HGI manages an extensive investment portfolio valued at approximately $21 billion, which includes over 62,000 apartment units across the United States and 5.0 million square feet of commercial properties in both the USA and the UK. With offices located in various regions including Norfolk, Virginia, New York, Baltimore, Los Angeles, and Tel Aviv, HGI is well-positioned to capitalize on emerging opportunities in the real estate investment landscape. Follow Harbor Group International on LinkedIn for more updates on their ventures.