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Sonnenblick-Goldman Corp., a New York realty firm that on Thursday signed the second largest real estate financing ever in New York, deliberately sought and found a Canadian bank to comanage the deal.
Canadian Imperial Bank of Commerce and Manufacturers Hanover Corp. will colead the $545 million credit to develop a residential and commercial project on the site of the old Madison Square Garden in midtown Manhattan.
"This was a very large deal," said William H. Stern, managing partner at Sonnenblick-Goldman. "Usually, domestic institutions limit themselves to $60 million to $80 million commitments.
"Manny Hanny was willing to commit more, but the Canadian banks like to put up bigger dollars. We thought if we brought in Canadian Imperial, they'd bring along at least another Canadian bank - which is what happened. By that time, we had the deal 50% to 60% done, and it was like a snowball rolling down a hill."
Sonnenblick-Goldman obtained the financing for a partnership led by Zeckendorf Co., which will develop an office, residential, and commercial complex to be known as Worldwide Plaza. The project involves nearly four acres of space in New York City, on the site of the original Madison Square Garden, and is...