3 Columbus Circle
NEW YORK CITY—The Moinian Group closed on a $595 million commercial mortgage-backed security loan from J.P. Morgan and Deutche Bank to refinance 3 Columbus Circle. The loan includes 10 years of interest-only payments at a rate of 3.914%. It replaces the Moinian Group's existing $350 million CMBS loan.
The Moinian Group also announced with excess loan proceeds from the CMBS loan and additional cash equity, it closed on the purchase of a six-story office condominium in the building from VMLY&R. In September 2018, WPP merged the brands of VML and Y&R, (Young & Rubicam) forming the new agency VMLY&R. Moinian stated with their acquisition from VMLY&R, they gained complete building ownership.
On Nov. 9, 2018, the Moinian Group issued a press release on Business Wire announcing it closed a deal with SL Green finalizing its 100% stake, full ownership of 3 Columbus Circle. In August, SL Green had announced it was selling its 48.9% interest in the building for $233 million to the Moinian Group.
On Wednesday, Commercial Observer reported Moinian was paying $266 million for VMLY&R's 214,372-square-foot office condominium.
CBRE's Mary Ann Tighe and Gregory Tosko represented VMLY&R in the transaction.
“For 20 years 3 Columbus Circle has been a cornerstone of the Moinian Group's portfolio and remains a benchmark for the standard of quality and excellence that we aim to achieve,” says Joseph Moinian, founder and CEO of the Moinian Group. “Our history with 3 Columbus Circle began at a very different time in the market, so it is especially gratifying to reacquire full control of this beloved property.”
When Moinian's 2018 deal with SL Green was announced and when that deal closed, GlobeSt.com traced the transactions surrounding 3 Columbus Circle's ownership as documented in multiple news sources.
Moinian's ownership history included a chapter with the Related Companies buying $250 million in debt on the property. Related was about to foreclose on the property, which was nearly vacant and financially distressed according to The New York Times.
But in 2011, SL Green invested in the property. Subsequently, SL Green and Moinian completed a comprehensive capital repositioning program with the architect Gensler. The modernization included a new façade, lobby, elevator system and digital billboard. The Moinian Group states the property is now 100% leased.
In addition to Moinian's establishing its headquarters in the building, tenants include Nordstrom, Chase and CVS.
Other Moinian projects include its residential properties Sky, Oskar and Marc, 90W, Ocean and Renaissance and its residential property 3 Hudson Blvd.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
