Hana Financial Selling debt tied to Manhattan real estate


Lee Jin-Kook from Hana Financial Investment and a rendering of 1 St. Marks Place (Hana Financial Investments)

Korean lender Hana Financial Investment is selling $ 173 million in debt tied to two prominent Manhattan assets.

Hana is selling a $ 145 million construction loan for Caspi Development’s luxury hotel project at 456 Greenwich Street in Tribeca and an interim loan for Real Estate Equities Corp.’s boutique office development. at 1 St. Marks Place in the East Village, Commercial Observer reported.

Newmark Knight Frank will auction the debt with first bids starting December 10th. None of the loans are in default.

Hana Financial provided the loan for the luxury hotel in Tribeca in October that enabled the stalled project to get out of bankruptcy. The five-star hotel with 96 keys was due to open in April 2022 under the Hotel Barriere Le Fouquet brand. The project’s developers claimed that a dispute over the long lease had prevented them from getting funding.

The second loan is a $ 27 million mezzanine position in a proposed office complex at 1 St. Marks Place. Hana provided $ 70 million in funding for the development in November 2019 but sold the first mortgage to Madison Realty Capital and retained the mezzanine position.

The debts are secured by the leasehold shares in the planned 60,000 square meter office building.

[CO] – Keith Larsen

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