Search
 

Marsh & McLennan Secures $475M Financing

NEW YORK CITY-Marsh & McLennan uses a portion of its condominium interest in the building, located between 45th and 46th streets, to secure a mortgage. The firm locks into a 30-year, fixed-rate deal.

By Melissa Kress | Updated on October 06, 2005

(To read more on the debt and equity markets, click here.)

NEW YORK CITY-Marsh & McLennan Cos. has obtained a $475-million mortgage financing of 1166 Ave. of Americas, a 1.7-million-sf office class A office building. Cushman & Wakefield’s Investment Banking Group was the financial advisor and exclusive placement agent to Marsh & McLennan in the deal.Using its real estate asset as collateral, the firm was able to secure a 30-year, fixed-rate financing, says Michael Rotchford, executive managing director and head of Cushman & Wakefield’s Investment Banking Group. The 44-story building, between 45th and 46th streets, serves as Marsh & McLennan’s world headquarters. Lehman Brothers was the mortgage lender for the deal. According to C&W, Marsh & McLennan refinanced an existing mortgage at this time to take “advantage of the competitive market for New York class A central business district office properties, as well as historically low interest rates.” As a result, the firm generated cash proceeds and lowered its cost of capital, C&W adds.Using real estate as collateral may be a growing trend. C&W officials, speaking at their third quarter market report update earlier this week, said that more corporate clients across the country are looking to see if their real estate assets are a cheaper or better choice than the bond markets for borrowing money.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.