AKS Capital arranges Brookfield refinancing for Milstein

AKS Capital Partners has arranged $749 million in refinancing from Brookfield for Milstein Properties to support the development of 335 Madison Avenue, a New York City-based office building. The debt will be used to enhance the ongoing redevelopment projects of the property.

PRESS RELEASE

New York, NY (October 28, 2019) – AKS Capital Partners today announced it has arranged a $749 million refinancing from Brookfield for Milstein Properties to support the redevelopment of 335 Madison Avenue. The debt will be used to enhance the ongoing redevelopment projects throughout the 1.1 million-square-foot, Class A office building, to bolster leasing efforts and to refinance the existing loan. The transaction is among the largest New York City financings this year.
335 Madison has been reimagined as The Company Building, incorporating several key elements tailored to solving the workplace needs of today’s top talent. The building is a first of its kind vertical campus and community located next to New York City’s most storied transportation hub — Grand Central Terminal. To foster community and connectivity between tenants throughout the entire building, its interiors have been thoughtfully designed with a hospitality-first approach. Its amenity offerings rival those of world-class hotels, including a wellness center, outdoor space, dining venues and a theater for both public and private programming. Importantly, Company, which has helped more than 100 seed companies grow to scale, more than doubled its footprint in the building to 250,000 square feet, serving as the foundation of the building’s rich innovation ecosystem. The Company Building offers a turnkey solution for large, enterprise companies looking to build a campus experience necessary to attract and retain valuable talent.

AKS Capital Partners’ founder, Aaron Appel, together with co-founding partners, Jonathan Schwartz, Keith Kurland, Adam Schwartz and Michael Diaz, all formerly of JLL, arranged the transaction for Milstein Properties with Brookfield.

Commented Appel: “With its unparalleled amenities package, positioning as New York City’s first vertical innovation campus and irreplaceable Grand Central Station location, Milstein Properties is once again delivering the city of New York a uniquely desirable asset represented by The Company Building at 335 Madison Avenue. Its combination of extraordinary features drove significant interest from the lending community.”

“From our first meeting with the Milsteins, we knew our long-term interests were aligned. This exciting project will revitalize East Midtown and its hospitality and technology amenities will allow tenants to attract the best talent in a competitive global marketplace,” said Timothy McGuire of Brookfield Real Estate Financial Partners.

Brookfield was represented by Victoria Schusterman at Gibson, Dunn & Crutcher LLP.

Milstein Properties is currently implementing a comprehensive renovation, led by SHoP Architects. Company’s offices house a combination of startup and enterprise tenants, offering them the opportunity to connect and collaborate. Brands like Accenture, Microsoft, Google and IBM can access the cutting-edge startups and talent of Company, simultaneously offering startups access to some of the most experienced and connected names in tech.

About Milstein Properties
Over the course of four generations, the Milstein Family has a well-established track record of success in both real estate development and management. Over that time, Milstein Properties has developed or acquired more than 50,000 apartments, 20 million square feet of office space, and 8,000 hotel rooms. In addition to extensive experience in development and ownership, the Milstein Family has deep knowledge of the construction, management, and brokerage businesses gained through its leadership and management of Starrett Housing Corp., National Kinney, Timko Contracting, Douglas Elliman, and Milford Management. Equally engaged in finance and banking, the Milstein’s have owned and operated Emigrant Bank and all of its subsidiaries, including Emigrant Realty Finance since 1986.

About Company
The Company Building is a curated innovation campus designed to help top companies attract and retain the best talent. Through a seamless integration of technology, hospitality, and purpose-build space, Company facilitates meaningful interactions between peers and delivers a dynamic shared experience, helping venture backed startups and large enterprises unlock true value.

About Brookfield Real Estate:
Brookfield’s Real Estate Group is Brookfield Asset Management’s largest investment platform, with approximately $194 billion of real estate assets under management and interests in over 450 million square feet of space globally. It is one of the world’s largest property owners and is comprised of approximately 17,000 operating employees across its vertically integrated property management platforms. Brookfield’s real estate portfolio includes office, retail, multifamily, logistics, hospitality, self-storage, triple net lease, manufactured housing and student housing assets across five continents. Our global portfolio is available to investors through our publicly listed vehicle, Brookfield Property Partners (NASDAQ: BPY, TSX: BPY.UN), and through our private funds.

About AKS Capital Partners
Established by Aaron Appel, Keith Kurland, Jonathan Schwartz and Adam Schwartz in 2019 and headquartered in New York, AKS Capital Partners is a leading real estate capital markets advisory firm active in debt placement, equity placement, loan sales and distribution. AKS focuses on tailored solutions for portfolio level debt and equity capital for developers, institutional and entrepreneurial sponsors across all asset classes nationally. In 2019, they are on track to close in excess of $15+ billion in transaction volume placement for their clients.