Deerwood Real Estate Capital has arranged the refinancing of a Gansevoort Hotel Group property at 420 Park Avenue South. The mortgage brokerage’s managing partner, Abe Katz, negotiated the 10-year, fixed rate loan along with colleagues Mark Silbersher and Russell Kimyagarov.

Mr. Katz told The Mortgage Observer that lender Citigroup refinanced the first mortgage for $140 million, while Mill Valley, Calif.’s Redwood Trust kicked in $20 million to refinance the mezzanine debt.

“It’s a deal that we, as a company at Deerwood, are very excited to have arranged,” said Mr Katz, who founded Deerwood in 2009 with partner David Rosenberg. “It’s certainly a high profile asset and an amazing hotel and an amazing property and a real destination with great restaurants and a rooftop bar. So we’re excited about the transaction for those reasons.”

The Gansevoort Park Hotel, built in 2010, is perhaps best known as temporary housing for ill-fated Kim Kardashian and Kris Humphries, who lived in the penthouse during their approximately 72 days of wedded bliss. The construction loan on the hotel was still in place, having outlasted the marriage.

Mr. Katz said that the transaction is in line with what Deerwood’s involved in and that other hotel transactions are underway at the firm. Over the past 12 months, he added, Deerwood has “financed about a billion dollars worth of deals.” He said that it was very active around the country as well.

Carl Gaines is reachable at cgaines@observer.com

Greenwich-based investment firm Starwood Capital Group has agreed to purchase 1272 Broadway from Lloyd Goldman's BLDG Management, it was announced earlier today.

The 21-story, 571,667-square-foot building is located on 37th and Broadway. Final terms of the deal were not disclosed. A spokesman for Starwood Capital Group declined to comment on the specifics of the deal.

Lloyd Goldman purchased the building in 2008 for $275 million, just one year after Wachovia bought an 85 percent share of the building for $285 million.

Starwood Capital Group purchased the building on behalf of Starwood Distressed Opportunity Fund IX.

In a statement, Chris Graham, Managing Director of Acquisitions at Starwood Capital Group, said it was "pleased" to purchase the office building due to the "limited new construction in New York City."

"We believe this is an exceptional investment due to its high double-digit cash-on-cash returns on our fund equity over our anticipated hold period, supported by the length of the leases and credit of its tenant," he added.

The building counts Ross Dress for Less, IBEX Construction and Exact Advertising LLC among its clients, according to CoStar data.

"We are excited to purchase a strong rent roll in one of the best office markets with rents close to market lows at a significant discount to replacement cost," said Marcos Alvarado, Senior Vice President at Starwood Capital Group, in a statement.

Starwood Capital Group has invested $12 billion and has over $19 billion under management.

Daniel Edward Rosen is reachable at drosen@observer.com