Sage Realty and Principal Real Estate Investors have secured a $127.5 million financial package to complete major capital improvements at 77 Water Street, a 26-story commercial building in Manhattan’s Financial District. The scope of work will focus on the pedestrian plaza at the foot of the property, upgrades to the lobby, and a redesign of the existing arcade.
William Kaufman Co., the parent company of Sage Realty, originally constructed the 614,000-square-foot Class-A office building in 1970. Today, the property is about 70 percent occupied, anchored by global engineering firm Arup and California-based law firm Lewis Brisbois Bisgaard & Smith.
The project team includes landscape architect MPFP, which will help renovate ground-floor areas. In its current condition, the plaza features honey locust trees, streams, foot bridges, and a wood-framed turn-of-the-century-style candy store.
“This loan closing represents a huge step toward an exciting repositioning and modernization at one of Wall Street’s most distinctive buildings,” said Sage Realty CEO Jonathan Iger. “Across the Sage portfolio, we are continuing to invest in capital improvements so that our buildings meet the needs of tenants in today’s evolving market and provide them with dynamic spaces for collaboration and socialization.”
The refinancing loan was provided by ACORE Capital. Eastdil Secured arranged the loan on behalf of Sage Realty and Principal Real Estate Investors.
“We are excited for the opportunity to work with tremendous sponsorship in Sage and Principal, whose respective track records speak for themselves,” said ACORE managing director Eric Ramirez. “The combination of Sage’s multi-generational ownership and Principal’s institutional expertise made this deal an attractive opportunity for us and we are confident in their vision for the future of this asset and their ability to navigate an evolving market.”