Owners of Two Connected Midtown South Buildings Refinance Property
05 June 2017 - 2:06AM
Dow Jones News
By Keiko Morris
The owners of two connected Midtown South buildings have secured
$430 million to refinance the newly renovated property, which
houses companies such as Facebook Inc. and BuzzFeed.
The group led by Morton F. Silver obtained the 10-year,
fixed-rate loan from Barclays PLC, enabling the partnership of
owners to repay the previous $217 million debt early and take
advantage of an attractive interest rate, Mr. Silver said. The loan
will also allow them to recoup the $135 million spent on a
significant makeover of the early 20th Century office buildings at
225-233 Park Ave. South.
Almost 100% leased, the two-building property drew many
proposals from a wide range of potential lenders, including life
insurance companies, domestic and foreign banks as well as
mezzanine lenders from overseas, said Jordan Roeschlaub, executive
managing director at commercial real estate advisory firm Newmark
Knight Frank.
The attractiveness of the building's tenants, which also
includes T. Rowe Price Group Inc., and the work Mr. Silver and his
firm Orda Management Corp. did to reposition the property made it
compelling to lenders, said Mr. Roeschlaub, who led the NKF Capital
Markets team that brokered the financing of the office
property.
A skybridge was built to connect the two buildings' upper
floors, which aren't level, Mr. Silver said. One building is 12
stories and the other is 19.
All the floors connect, creating a 40,000 square-foot footprint
attractive to large users," Siad Mr. Silver, chairman of Orda
Management.
In addition, the owners removed paint from the facade to restore
the original limestone look. A number of outdoor spaces were added,
such as a 13th floor rooftop garden, a 14th floor garden terrace
and a courtyard on the 19th floor, where the building's cooling
tower once was located.
The ownership added new mechanical systems, created space to
park about 75 bicycles in the loading dock area and redid the lobby
with a new stone floor.
Write to Keiko Morris at Keiko.Morris@wsj.com
(END) Dow Jones Newswires
June 04, 2017 11:51 ET (15:51 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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