New York Life Real Estate Investors originates $252.8 million mortgage and mezzanine facility secured by three NYC ground leased hotel properties.
NEW YORK, April, 2017—New York Life Real Estate Investors announced today the financing of three ground leases improved with three limited service hotels totaling 1,179 rooms in New York City. The $252.8 million, cross-collateralized, 25 year facility was made to affiliates of BH Properties of Los Angeles, California, which acquired the leased fee position in September 2016 for an undisclosed price.
“New York Life is pleased to provide this capital to facilitate BH Properties’ earlier acquisition of the subject and satisfy their long term borrowing objectives,” said Eric Becher, senior director of New York Life Real Estate Investors’ New York Regional Office. “This financing will also provide them with additional capital for future acquisitions, while simultaneously meeting New York Life’s desire to place long term debt against secure cash flowing assets.”
“This was an important financing for us as it will increase our ability to more effectively pursue opportunistic acquisitions,” said Tye Palonen, director of finance at BH Properties. “New York Life Real Estate Investors was able to see the underlying value of the assets and still consider the value-appreciation play. It’s always a pleasure working with a lender that is able to understand our vision.”
About New York Life Real Estate Investors
New York Life Real Estate Investors is a division of NYL Investors LLC, a wholly-owned subsidiary of New York Life Insurance Company. Please visit New York Life Real Estate Investors’ website at http://www.newyorklife.com/realestateinvestors for more information.
New York Life Real Estate Investors is a full service, fully-integrated real estate enterprise with more than 100 professionals. The division has market-leading capabilities in origination, underwriting, and investment in real estate equity products and related debt, including real estate equity investments, commercial mortgage loans, commercial mortgage backed securities, and unsecured REIT bonds. With over $48 billion in assets under management as of December 31, 2016, New York Life Real Estate Investors is actively seeking to acquire additional properties throughout the U.S.
About New York Life
New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States* and one of the largest life insurers in the world. New York Life has the highest possible financial strength ratings currently awarded to any life insurer from all four of the major credit rating agencies: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+).** Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investments*** provides institutional asset management. Other New York Life affiliates provide an array of securities products and services, as well as retail mutual funds. Please visit New York Life’s website at www.newyorklife.com for more information
About BH Properties
BH Properties is a proven leader in the ownership, operation, and repositioning of “value-add” real estate across the country. Headquartered in Los Angeles with over 90 properties in 17 states, the privately held company has maximized the value of underperforming office, industrial, retail and multifamily properties for the past 25 years. BH Properties’ ability to acquire quickly combined with its disciplined approach to owning and managing has enabled it to transform its properties into attractive, consistently profitable investments.*Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, 6/17/16. For methodology, please see http://fortune.com/fortune500/
**Individual independent rating agency commentary as of 8/9/16.
***New York Life Investments is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary, New York Life Investment Management LLC.
New York Life Insurance Company