AEW Getting Boutique Soho Office Building For $86.2 Million

AEW Capital Management acquired a half-new, half-renovated boutique office building in Soho for $86.2 million.

The Boston-based global real estate investment manager purchased the 98,400 Sq Ft. building at 163 Varick Street, also known as 60 Charlton Street, from APF Properties this month.

APF had purchased the property in 2017 for about $65 million when it was half its current size. After gutting the former six-story industrial building, it added six floors with ceiling heights reaching 14 to 15 feet. The renewals also included a fireplace in the lobby, bike room, shower area and roof deck with a kitchen.

The now-class A office building will be LEED Gold and adds new elevators, windows, stairs, and an energy-efficient HVAC system.

Meridian Group arranged the recapitalization of the overhauled building, including an $81 million senior loan from a fund run by Ares Management and an equity infusion from AEW.

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