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Trizec Refinances Two Sites for $600M

NEW YORK CITY-Two notable Manhattan properties--the Grace Building and the World Apparel Center--are refinanced to the tune of $600 million. Trizec Properties jointly owns the two Midtown landmarks with Swig Co.

By Barbara Jarvie | Updated on June 22, 2004

NEW YORK CITY-To achieve more economic flexibility and possibly better position itself for future acquisitions, Trizec Properties has completed $600 million of non-recourse refinancings on two Midtown offices that are jointly owned with Swig Co. The properties in question are the 1.5-million sf Grace Building at 1114 Avenue of the Americas and the 1.2-million sf World Apparel Center at 1411 Broadway.

Trizec’s share totals approximately $180 million after adjusting for the company’s 50% ownership interest and various loan closing costs. According to a company statement, the “transaction extends Trizec’s average debt maturity profile and provides the funds to unencumber more assets, thereby creating greater balance sheet flexibility.”

The company had been analyzing refinancing for “some time,” Jeffrey Echt,Trizec SVP and treasurer, tells GlobeSt.com. “We perceived there was a potential for the rates to rise.” A Swig Co. representative says the company would not directly discuss the refinancing and its plans for the proceeds.

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