Wells Hill was engaged by a family trust to advise on and execute a plan to expand the trust’s real estate portfolio in New York City through the strategic acquisition of an office property in Manhattan. The engagement was prompted by the trust’s need to allocate further capital towards real estate and to generate revenue for its internal management and leasing teams through the operation of an additional major office building. During an intensive one-year search, Wells Hill identified, examined and performed detailed underwriting of over fifty office properties, many of which had not yet been offered to the market. The process culminated with the trust’s acquisition of 14 Penn Plaza (225 West 34th Street), a 22-story, 550,000 square-foot office building located between Seventh and Eighth Avenues, across from New York Penn Station. Wells Hill managed the due diligence, negotiated the contract with the seller and led the transaction to a successful closing.
Subsequently, Wells Hill was re-engaged by the trust to refinance the short-term facility put in place to finance the acquisition of 14 Penn. In a capital markets environment where financing was very scarce, Wells Hill originated and structured a longer-term facility with a major banking institution in the amount of $265 million.