After extinguishing the existing indebtedness on the property, Boston Properties reports that it intends to use a portion of its share of the net proceeds to repay $310 million of outstanding debt under its $1.5-billion unsecured line of credit and for other working capital purposes. The extinguished debt bore interest at a weighted-average rate of approximately 5.96% per annum, an effective annual GAAP interest rate of approximately 3.03% and was scheduled to mature on Oct. 7, 2017. There was no prepayment penalty associated with the repayment of the prior indebtedness on the property, the company noted.

Boston Properties and partners acquired the 50-story GM building for approximately $2.9 billion in 2008. The building was purchased as a part of a four-building $3.9-billion purchase from Macklowe Properties, which at the time faced debt of approximately $7 billion due to its earlier acquisition of a portfolio of properties from Equity Office Properties.

A partnership of the Trump Organization sold the GM building to Macklowe Properties for $1.4 billion in 2003.

The Goulston & Storrs team from its Boston and New York City offices that arranged the new financing for Boston Properties on the GM Building was led by the firm's co-managing director, Barry D. Green. The team also included Bjorn A. Andersen, director, Frank Ditta, associate, Casey Milianta associate, Ranya S. Margi, paralegal, Timothy J. Carter, associate, Bruce P. Meyerson, director and Douglas B. Rosner, director.

General Motors

NEW YORK CITY—Boston Properties, Inc. has closed on the $2.3-billion refinancing of the General Motors building at 767 Fifth Ave. The deal announced last evening is believed to be one the largest financing deals for a single office asset on record in the United States.

New York City-based law firm Goulston & Storrs arranged the 10-year interest-only financing deal on the 1.8-million-square-foot property with a group of lenders led by Morgan Stanley. The group of lenders also included Wells Fargo, Deutsche Bank and Citi, Globest.com has learned. The newly secured financing matures on June 9, 2027.

The fixed-rate loan at an annual rate of 3.43% replaces a $1.6-billion loan package that was set to expire in October. The terms of the refinancing deal, including the rate lock at 3.43%, reached by a consolidated entity of Boston Properties with the group of lenders, were reported on April 25^th as part of the company's first quarter 2017 financial results announcement. Boston Properties has an ownership interest of 60% in the consolidated joint venture entity.

On April 24, in contemplation of closing on the new financing, the consolidated joint venture entity terminated forward-starting interest rate swap contracts with notional amounts aggregating $450 million and paid approximately $14.4 million, which amount will increase the company's effective annual GAAP interest rate of approximately 3.64% (including the amortization of financing costs and additional mortgage recording tax) over the 10-year term.

After extinguishing the existing indebtedness on the property, Boston Properties reports that it intends to use a portion of its share of the net proceeds to repay $310 million of outstanding debt under its $1.5-billion unsecured line of credit and for other working capital purposes. The extinguished debt bore interest at a weighted-average rate of approximately 5.96% per annum, an effective annual GAAP interest rate of approximately 3.03% and was scheduled to mature on Oct. 7, 2017. There was no prepayment penalty associated with the repayment of the prior indebtedness on the property, the company noted.

Boston Properties and partners acquired the 50-story GM building for approximately $2.9 billion in 2008. The building was purchased as a part of a four-building $3.9-billion purchase from Macklowe Properties, which at the time faced debt of approximately $7 billion due to its earlier acquisition of a portfolio of properties from Equity Office Properties.

A partnership of the Trump Organization sold the GM building to Macklowe Properties for $1.4 billion in 2003.

The Goulston & Storrs team from its Boston and New York City offices that arranged the new financing for Boston Properties on the GM Building was led by the firm's co-managing director, Barry D. Green. The team also included Bjorn A. Andersen, director, Frank Ditta, associate, Casey Milianta associate, Ranya S. Margi, paralegal, Timothy J. Carter, associate, Bruce P. Meyerson, director and Douglas B. Rosner, director.