JLL secures $545M to finance 711 Fifth Avenue
Firm arranges loan for joint venture led by SHVO with Deutsche Finance America and BLG Capital
NEW YORK, March 13, 2020 — JLL Capital Markets secured a $545 million loan to finance 711 Fifth Avenue in New York on behalf of the development group led by SHVO, including Deutsche Finance America and BLG Capital. Goldman Sachs led the financing.
Bethlehem Engineering Corp. designed the 18-story building that was constructed in 1927 as the original headquarters of NBC. The historic building features 340,024 square feet of space, with 284,061 square feet of office space and 55,963 square feet of retail.
The property is located just steps away from Central Park and the world-renowned 57th Street luxury residential corridor, also known as Billionaire’s Row. The prime corner location offers more than 124 feet frontage along the Upper Fifth Avenue Corridor, the second most expensive retail corridor in the world, and 154 feet of frontage along East 55th Street.
SHVO, Deutsche Finance America and BLG plan to increase the tenant experience at 711 Fifth Avenue through several value-add strategies. The owners are planning on building upgrades that include lobby renovations, mechanical repairs, and expansion of terraces and outdoor space.
The SHVO-led development team has acquired seven properties during the past 18 months, including 685 Fifth Avenue, 711 Fifth Avenue and 530 Broadway in New York; the Raleigh, Richmond and South Seas hotels on Miami Beach and 9200 Wilshire Boulevard in Beverly Hills, Calif.
SHVO and its partners were represented by a JLL team led by Michael Tepedino, David Sitt, Robert Tonnessen, Kristen Knapp and Sophie Gaylor. Morris Missry of law firm Wachtel Missry LLP served as legal advisor for this investment, as well as for the seven other acquisitions by SHVO and its partners.
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.
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JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion, operations in over 80 countries and a global workforce of more than 93,000 as of December 31, 2019. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
SHVO is a residential, commercial, and hospitality real estate owner and developer known for acquiring, developing, and operating unique properties in iconic locations. SHVO’s more than $7 billion portfolio includes revitalized landmarks, new ground-up developments, and mixed-use properties in the world’s most sought-after locations, including Fifth Avenue in Midtown Manhattan, Collins Avenue in Miami Beach, Wilshire Boulevard in Beverly Hills, Chicago’s Loop, and San Francisco’s Financial District. Michael Shvo, Chairman and CEO, founded the firm in 2004 and is renowned as one of the real estate industry’s most visionary leaders.
About Deutsche Finance America
Deutsche Finance Group (“DFG”) is a Munich- based alternative asset manager established in 2005. With more than 100 employees, DFG has made investments of approximately 6 billion euros across more than 250 strategies in 46 countries. Deutsche Finance America (“DFA”) is the U.S. direct real estate private equity business wholly owned by DFG and its principals established in 2018. DFA has acquired 11 properties with total capitalization of over $3.1 billion.
About BLG Capital Ltd.
BLG Capital Ltd. (“BLG”) is an independently managed private equity real estate investment management company focused on investments in real estate assets and companies with under- lying real estate assets in Turkey and major global cities. One of the first of its kind in Turkey, BLG provides institutional investors specialized investment platforms to participate in the rapidly growing Turkish real estate market, as well as broader international hubs such as New York City, Los Angeles and Miami. Backed by a vertically integrated investment / development platform as well as a team of investment professionals with significant expertise in real estate investments, BLG differentiates itself through its unique vision of high-end, lifestyle-focused project design and attention to detail, combined with creative real estate asset management and execution capabilities. As a developer, BLG has developed over 11 million SF of unique real estate projects. To date, BLG has raised and invested over $1.3 billion of capital through its funds and direct investment vehicles, and has over $4 billion of gross AUM.