Iron Hound Provides $400M Refinancing in Two Transactions

Iron Hound Management Co. recently completed the refinancing for two New York deals that was over $400 million.

The New York-based real estate investment company that specializes in commercial loan restructuring said the first transaction expanded its reach on the brokerage side to include loan debt and equity placement. The company helped structure the payoff of the $106 million defaulted securitized loan with Starwood Capital for two Midtown office assets.

The 17-story tower at 2 W. 46th St. includes 150,000 square feet of office space and 17,000 square feet of retail, while the 369 Lexington Ave. facility boasts 108,000 square feet of office space and 20,000 square feet of retail.  

In addition, Iron Hound restructured a $300 million securitized loan with LNR for Bush Terminal, a 6.1-million-square-foot industrial complex located in the Greenwood Heights neighborhood of Brooklyn. This represents the second time Iron Hound arranged a loan modification with LNR’s sponsor Ruby Schron.

This complex features a mix of businesses ranging from artisans and apparel manufacturing to data centers and warehousing. The site is in the midst of a 10-year modernization and preservation program in which the cash will be used for post-Hurricane Sandy repairs as well as other asset improvements.

“In the most recent modification, Iron Hound arranged the assumption and restructured the existing modification to give the new borrowing entity the ability to put more capital into the project, gain a higher preferred return, and more favorable back-end splits,” said Robert Verrone, principal of Iron Hound Management.

Since its inception, Iron Hound Management has refinanced about $10 billion in transactions. Currently, the company is engaging on over 30 assignments totaling more than $2 billion.

“Our expertise in commercial real estate along with our range of industry contacts enables us to negotiate successful loan modifications that benefit both the lender and the bondholder,” Verrone said.