Canyon Partners Real Estate and CapitalSource Invest Over $66 Million in 60k Square Foot Office Property in Lower Manhattan

April 02, 2019

For Immediate Release

Los Angeles, CA – April 2, 2019 – Canyon Partners Real Estate LLC (“Canyon”) and CapitalSource, a division of Pacific Western Bank, have provided over $66 million in financing to a joint venture between East End Capital, an investment fund managed by Greenfield Partners, LLC and K Property Group to develop 141 East Houston Street, a nine-story property featuring 49k square feet of office space and 12k square feet of retail space. The property is located at the convergence of Manhattan’s dynamic SoHo, East Village, and Lower East Side neighborhoods.

“141 East Houston Street is designed to meet the increasing demand for newly-constructed, modern, boutique office space from technology, advertising, media, information (“TAMI”) companies, financial firms, as well as family offices seeking a full-floor option in a vibrant and desirable location,” said Christopher Smith, Managing Director, East End Capital.

Designed by renowned architectural firm, Roger Ferris & Partners, the property will offer column-free floor plates that allow for maximum flexibility to accommodate both open plan and traditional private office layouts. Unobstructed floor-to-ceiling window lines will offer panoramic views of the Midtown Manhattan skyline, while amenities include a concierge, a shared rooftop terrace, and trellised breezeway which creates a unique buffer from the activity of Houston Street.

141 East Houston Street’s Lower Manhattan location is among New York City’s most historic and culturally rich neighborhoods. The property is surrounded by restaurants, nightlife, shopping, and cultural locations, and is proximate to conveniences such as a Whole Foods grocer and four subway stations servicing eight lines.

The financing package for 141 East Houston Street consisted of a $48.0 million senior loan from CapitalSource and an $18.7 million mezzanine loan from Canyon. This investment marks Canyon’s seventh investment with CapitalSource.

“Canyon has been an active investor in the New York City market for over two decades and we are pleased to be working with them, in close collaboration with CapitalSource, to execute this transaction,” said Smith.

Canyon has a long track record of investing in the New York City area. Over the last 10 years, Canyon has made approximately $400 million of debt and equity investments in New York City area assets, supporting the financing of over $1.0 billion of projects in the region.

Construction of 141 East Houston Street is scheduled to begin immediately. K Property Group has been engaged as the office leasing agent, while RIPCO Real Estate will manage retail leasing.

About Canyon Partners Real Estate LLC
Founded in 1991, Canyon Partners Real Estate LLC® (“Canyon”) is the real estate direct investing arm of Canyon Partners, LLC, a global alternative asset manager with over $24 billion in assets under management. Over the last ten years, Canyon has invested more than $4.6 billion of debt and equity capital across over 170 transactions capitalizing approximately $12 billion of real estate assets, focusing on debt, value add, and opportunistic strategies. With 27 years of experience, Canyon has established a broad menu of investment capabilities spanning property types, US regions, and project stages (including development, transitional, and distressed/workouts).

For more information visit: www.canyonpartners.com.

About CapitalSource
CapitalSource makes commercial loans to small and middle-market businesses nationwide. CapitalSource is a division of Pacific Western Bank, a Los Angeles-based commercial bank with approximately $25 billion in assets and 74 full-service branches in California and one in Durham, North Carolina. Pacific Western Bank is a wholly-owned subsidiary of PacWest Bancorp (NASDAQ:PACW). For more information, visit capitalsource.com.

About East End Capital
East End Capital (www.eastendcap.com) is a vertically integrated owner, operator and manager of commercial, residential and retail real estate located in New York City and South Florida. The company seeks out growth areas fueled by the arts and the creative class, and demographic and infrastructural improvements.  East End adds value through development and proactive asset management.

About Greenfield Partners, LLC
Greenfield Partners, LLC is a private real estate investment firm headquartered in Westport, CT. Over its 22-year history, Greenfield has earned the reputation as a thought-leader in the logistics, hospitality, and office sectors, and has invested over $5 billion in equity across multiple asset types. The firm’s investments have spanned the U.S., Canada, and Europe, and have taken the form of both equity and opportunistic debt.

About K Property Group LLC
K Property Group (KPG) is a fully integrated real estate investment platform with asset management, leasing and construction management capabilities with over 35 years combined experience. The firm’s mission is to acquire and reinvest in value-add, retail and mixed-use properties. KPG targets underperforming, non-stabilized properties in New York City where KPG can generate value through capital improvements and strategic retenanting, resulting in NOI accretion. KPG leverages its extensive network and market knowledge which supports a demonstrable history of unique, off market deal sourcing. This provides long term value to KPG’s partners and investors—both institutional and private.



MEDIA CONTACT:
Maureen Richardson
River Communications
(914) 686 5599
[email protected]

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