The Real Deal New York

Beacon Capital secures $321M loan for 575 Fifth office condo

Boston-based investment firm acquired 50 percent stake in unit

October 15, 2015 03:20PM
By Rey Mashayekhi

575 Fifth Avenue

575 Fifth Avenue in Midtown and Alan Leventhal

UPDATED, 5:40 p.m., Oct. 15: Real estate investment firm Beacon Capital Partners secured a $321 million loan financing its acquisition of a 50 percent stake in an office condo at MetLife’s 575 Fifth Avenue in Midtown.

Deutsche Bank provided the mortgage, which consists of a $271.1 million acquisition loan, a $37.3 million building loan and a $12.6 million project loan, according to property records filed with the city Thursday.

Boston-based Beacon acquired its stake in the unit in August, according to city property records, though no purchase price on the transaction was provided. MetLife bought the 35-story office tower for $385 million in 2005 from a partnership that included Mets owner Fred Wilpon’s Sterling Equities.

A MetLife spokesperson confirmed Beacon’s acquisition of a 50 percent stake in the commercial condo. Beacon could not be reached for comment.

This isn’t Beacon’s first deal with MetLife; the firm acquired a minority stake in the insurance giant’s 85 Broad Street office building in the Financial District last year.

The deal for 85 Broad Street came shortly after Beacon agreed to sell a separate Downtown office tower, at 32 Old Slip, to RXR Realty for $675 million.