NEW YORK CITY-The famed Lord & Taylor on Fifth Avenue has received a makeover—a financial one, that is. CIBC and Natixis Real Estate Capital have provided a $250 million mortgage loan for the refinancing of the iconic 611,000-square-foot department store at 424 Fifth Ave., according to law firm Morrison & Foerster, who repped CIBC on the deal.
“As an iconic building, there relatively is low leverage here, only 45%,” Chris Delson, a partner at MoFo’s New York real estate finance group, tells GlobeSt.com. “Usually in most refinancings, you see everyone trying to maximize proceeds, but it is not so much the case here.”
Under the deal, CIBC is acting as administrative agent and providing half the loan amount, while Natixis Real Estate Capital will provide the other half of the loan. “When they [CIBC] originally sourced the deal and they wanted someone to bring in half of it,” Delson adds.
Mark Edelstein, chair of the firm’s New York real estate finance group, says improving conditions in the commercial real estate market combined with a low interest rate environment made it an “advantageous time” for refinancing. “We expect to see additional work as owners look to benefit from the favorable refinancing market,” he says.
MoFo also represented CIBC in refinancing transactions in late 2011 for the Sofitel Hotel in Midtown and for 180 Maiden Lane in the Financial District. “While CIBC has always been an active and well-respected lender, their recent deals demonstrate how they have really ratcheted up their activity in New York City,” Edelstein adds. Associate James Pincow also worked on the deal.
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