The Real Deal New York

RFR nabs $1B loan for Seagram Building

April 25, 2013 05:30PM

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Aby Rosen, Michael Fuchs and the Seagram Building

RFR Realty has arranged a roughly $1 billion loan for its 38-story Seagram Building at 375 Park Avenue, Crain’s reported. The financing came from Citibank and Deutsche Bank, according to Crain’s sources, which will be split and sold to investors as commercial mortgage-backed securities.

This pricey deal will allow RFR to pay off roughly $400 million in senior debt and more than $160 million in mezzanine loans, and generate tax-free proceeds to the tune of hundreds of millions of dollars.

RFR previously offered up a 49 percent stake in the 800,000-square-foot property for about $1,800 per square foot, as previously reported. Due to the large asking price, RFR’s Aby Rosen and Michael Fuchs could not find a buyer.

RFR instead took out the $160 million in mezzanine loans to buy out the building’s minority owners. One of them included billionaire Peter Brant, who owned a 35 percent stake. [Crain's]Zachary Kussin

  • HughGass

    it’s a bit more than 28 stories, no?

  • LeighKampingCarder

    Thanks for catching that typo, Hugh. We’ve fixed.

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