NEW YORK CITY—The Grace Building has been refinanced for $900 million, according to the Wall Street Journal. The famous sloped tower previously had a mortgage of $345 million.
The deal comes as the Grace Building's value has soared to an appraised $1.8 billion, up from $635 million in 2004, when the skyscraper last received a loan. Of the new debt, about $55 million was used to pay expenses and was set aside for future costs. The owners were able to put the rest—about $500 million in cashin their pockets, according to loan documents.
Owned by a joint venture between the Swig family and Brookfield Office Properties, the building has been commanding high rents as of late. In 2004, all the large tenants paid less than $40 a square foot in rent. In the two largest deals more recently, Bain & Co. is in for $93 a square foot and Cooley LLP signed a lease for $92 a square foot, according to loan documents.
In addition, the Grace building recently underwent a $34 million renovation of its lobby and elevators, contributing to the huge jump in the asset's value, says Brookfield CIO Mark Brown in the Journal. A request for comment from Brookfield made by GlobeSt.com was not returned.
An inquiry by GlobeSt.com made to Brookfield for adddional comment was not returnted.
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
