Natora Group records $226M SoHo deed and $68.5M JPMorgan loan

The building is the 13-story, roughly 223,000-square-foot office property that SL Green Realty said in September it had agreed to sell to Natora Group for the same $226 million. We covered the contract at the time. What the filings add is the capital structure: the buyer did not pay all cash against the deed. A bank loan covers a bit under a third of the price, and the rest came from other sources.

The mortgage is the first lender record we have seen on this asset under the new owner. Seller and buyer entities are single-purpose names tied to this one lot, so the recorded parties are not the brand names behind them. We use “Natora Group” for the buyer, as in the September announcement, and treat the seller entity as the SL Green vehicle for this building because the price, property and timing match that announcement.

Why it matters

A closed sale with a recorded loan is a different data point from a signed contract. It shows a bank was willing to lend against a fully leased SoHo office building at roughly one dollar in three of the price, in a market where office debt has been scarce for owners of weaker buildings. For New York developers and investors sizing up mixed-use and retail-heavy office, the pairing is a read on both price and available leverage.

The numbers

The deed shows $226,000,000, which works out to about $1,013 per square foot on the 223,000 square feet in SL Green’s announcement. The mortgage is $68,500,000, or about 30.3% of the recorded price. That leaves $157.5 million of the price funded outside this loan. The September coverage reported that the buyer planned a 1031 exchange, but the filings do not show the source of that remainder, so we do not attribute it. The mortgage terms, including rate, maturity and any guarantees, are not part of the data we pulled and are not reported here.

What’s next

SL Green said it expects about $216 million in net proceeds and plans to use them to repay unsecured corporate debt. Its next quarterly filing should show the sale as complete. Watch the City Register for any assignment, subordination or additional financing against lot 7, which would show whether Natora Group layers more debt onto the property.