The Real Deal New York

Pension fund seeking $650M loan for 590 Madison

State Teachers Retirement System of Ohio hired Cushman to source funds

April 20, 2015 03:10PM

590 Madison Avenue

590 Madison Avenue in Midtown

The pension fund that owns 590 Madison Avenue – the Plaza District office tower that house financial services firms UBS, Morgan Stanley and Bain Capital – is seeking a loan valued at up to $650 million.

The State Teachers Retirement System of Ohio has retained a Cushman & Wakefield team of Steve Kohn, Alex Hernandez, Chris Moyer and Alex Lapidus to source the funds, which could be one of the largest loans to close this year. The pension fund put a stake in the 42-story tower on the market last October, when the building was valued at $1.5 billion.

As the amount the owners are seeking comes out to an LTV of around 45 percent, it is likely to prove an appealing proposition for banks, funds and alternative lenders, according to the New York Observer.

Goldman Sachs last refinanced 590 Madison Avenue, previously known as the IBM Building, in 2007, providing the pension fund with $350 million. Developer Edward Minskoff handles rentals at the building and developed the property in 1983.

The Safra family of Brazil was reportedly in talks to acquire a minority stake in 590 Madison Avenue earlier this year. [NYO]Rey Mashayekhi