RXR Realty and Walton Street Capital have secured up to $165 million in mezzanine financing for 237 Park Avenue.
The loan was provided by SL Green Realty and the Blackstone Group with an interest rate of 7 percent, according to Jones Lang LaSalle, which helped arrange the deal. RXR and Walton will receive a total of $125 million up front and could receive as much as $40 million more.
Kellogg Gaines and Dustin Stolly of JLL’s Capital Markets group represented the borrowers in the deal.
“As the owners are about to embark on a comprehensive renovation of the property and with extensive discussion at the NYC Department of Planning about improved zoning to the Grand Central District along with the East Side Rail Project bringing more commuters through Grand Central Terminal, this asset is well positioned to be a premier Manhattan office property,” Gaines said in a release.
RXR and Walton purchased the property, which includes tenants J. Walter Thompson, UBS and JPMorgan Chase, earlier this year for $810 million. — Julie Strickland