KPG Funds lands $111.1M mortgage on SoHo's 155 Spring Street

KPG Funds’ ownership entity, KPG 155 Spring Owner LLC, recorded a $111,100,000 mortgage on Sept. 30 with BO OREC REIT Lender LLC on its SoHo holding at 155 Spring Street (Manhattan block 501, lot 1101). The document is dated Sept. 9 and covers three tax lots.

Why it matters

For developers and brokers, the point is the size of the debt against the owner’s entry price. The same entity bought the property from VNO 155 Spring Street LLC for $67,400,000, recorded Jan. 31, 2022, 1,703 days before this mortgage. The new loan is $43,700,000 above that deed price, in a corridor where owners are borrowing against assets they have held through a rate cycle.

The record does not say what the proceeds repay or fund. We did not find a satisfaction of the 2022 loan, so we are not calling this a refinancing. Lender-side details also stay open: the record names BO OREC REIT Lender LLC and nothing more.

The numbers

The 2022 financing was a $45,190,000 mortgage and a $46,090,000 amended and restated agreement, both with BrightSpire Credit 3, LLC. Against that larger figure, the new mortgage is 2.4 times as big. Because the document spans three tax lots, we cannot compute a per-square-foot figure, and the record does not give building area for the lots.

Rate backdrop: our FRED series shows the 10-year Treasury at 5.3% as of September and SOFR at 3.9%, so any floating-rate loan here is priced off a much higher base than in 2022.

What’s next

Watch for a satisfaction of the BrightSpire loan, which would show whether the old debt was retired. A construction or conversion filing at the address would show what the capital is for. Other large Manhattan loans are tracked in New York, including the Roosevelt Island loan.