Crain's New York Business
In June of 2009, Durst announced a loan package from BofA and four other lenders: Bank of New York Mellon, Wells Fargo Bank, Westdeutsche ImmobilienBank and Helaba Bank. BofA held 50% of the loan, while the four other banks had "about an equal share of the rest," a Durst spokesman told GlobeSt.com at the time. The loan was used to retire a $950-million construction debt, repay investors and complete work on the 2.1-million-square-foot tower.
This year, the tower's owners believe they can get even better terms, according to Crain's. For one thing, the refi in '09 was only for three years.
If successful, the follow-up refi would provide further evidence that the capital and investment sales markets are beginning to pick up steam. As a further mark of owner confidence, GlobeSt.com reported earlier this week that the owners of the retail condominium at 666 Fifth Ave., a partnership of the Carlyle Group and Crown Acquisitions, are marketing the condo. They're seeking $600 million to $700 million, a markup of 14% to 33% on the $525-million price tag the condo commanded in 2008.
In mid-April, SL Green Realty Corp. paid $193 million, or $636 per square foot, to buy 600 Lexington Ave. from a joint venture led by Hines US Core Office Fund. The REIT is also assuming about $50 million of debt maturing in 2014 on the 303,515-square-foot office tower. Marc Holliday, SL Green's CEO, said in a statement, "Recent improvements in New York City office fundamentals, coupled with improvements in the credit markets, have resulted in the New York City real estate market beginning to open up after two years in which there has been a dearth of institutional quality offerings."
Published reports say that two other office towers—the Moinian Group's 417 Fifth Ave. and Broadway Partners' 340 Madison Ave.—are close to selling. Bloomberg reported Tuesday that RXR Realty is in talks to buy the 739,000-square-foot 340 Madison for $570 million, a deal that would entail the Uniondale, NY-based owner and developer buying the property in phases. A spokesman for CB Richard Ellis, which is marketing the property, declines comment.
The pending 417 Fifth deal, as reported by both Bloomberg and the Wall Street Journal, has Mexican billionaire Carlos Slim Helu paying $140 million to buy the 408,000-square-foot office tower. A partnership of the Moinian Group and Goldman Sachs paid $250 million for the property in 2007. Through a spokesman, Moinian Group CEO Joe Moinian declined to comment on, confirm or deny "any rumors about 417 Fifth Ave."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 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.
Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
