From left: Mandarin Oriental hotel and 3 Columbus Circle

With the European debt crisis stifling the continent’s activity in New York City real estate, China has stepped up to fill its shoes. Citing Trepp data, Bloomberg News reported that Bank of China has quintupled its lending for U.S. properties since 2008 to $2.6 billion. And six of the eight U.S. property loans the bank issued last year were for in New York City. It lent $260 million to 3 Columbus Circle, and $175 million last month to refinance the Mandarin Oriental hotel in Columbus Circle. [more]

Financing for New York City real estate projects is back. Of the top 35 deals done in the last 12 months, 24 were refinancing and nine were new loans taken out of acquisitions, according to Crain’s. The largest deal was an $800 million refinancing of 245 Park Avenue, between 46th and 47th streets, for which Brookfield Asset Management and ING Clarion tapped the Bank of China in September 2010. It was followed closely by Boston Properties’ $700 million loan from MetLife for the Citigroup Center at 153 East 53rd Street, between Third and Lexington avenues, in March 2011, and a $650 million refinancing of One Bryant Park between 42nd and 43rd streets in June last year by Bank of America. [more]

The Bank of China has agreed to provide a five-year, $260 million loan to refinance 3 Columbus Circle, the glass-walled office tower where the Moinian Group narrowly skirted a takeover attempt by Stephen Ross’ Related Companies earlier this year. Moinian had been trying to renovate the 26-story building when he defaulted on his $250 million mortgage last summer and Related moved to try to wrest control through a foreclosure. The plan was to demolish the 700,000-square-foot structure and replace it with luxury condominiums and a Nordstrom department store. But SL Green Realty and Deutsche Bank came to Moinian’s rescue, helping Moinian to pay off Ross and take back the mortgage. TRD [more]

While many of the money center banks are sitting on the sidelines when it comes to providing mortgage financing, Chinese, German and European financial institutions and insurance companies are dipping their feet into the water to provide much needed financing for commercial real estate. Foreign and domestic lenders and insurance companies prefer to lend to real estate investment trusts. Later this month, a syndicate led by Westdeutsche ImmobilienBank is expected to close on a $135 million loan on the 25-story office tower at 300 Park Avenue. The 15 floors of the tower serve as the world headquarters for Colgate Palmolive. The borrowing entity is controlled by Tishman Speyer Properties. As reported in The Real Deal today, a syndicate of banks led by the Bank of China, provided SL Green Realty with a five-year, floating rate mortgage for $475 million for the landmark Times Square office tower at 1515 Broadway. The new mortgage replaces the former $625 million mortgage that was due to mature in November 2010.  More
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SL Green Realty has closed on a $475 million refinancing of 1515 Broadway, home to Viacom International, the company announced today. The building, between 44th and 45th streets, is owned by SL Green in a joint venture with SITQ, a real estate investment, management and development subsidiary of the Caisse de dépôt et placement du Québec, or the Quebec Deposit and Investment Fund. A syndicate led by the Bank of China provided the new five-year, floating rate mortgage. SL Green and SITQ replaced the former $625 million mortgage that was due to mature in November this year with longer-term financing. “We
were able to source this financing which required a lower equity
contribution than previously forecast,” said SL Green President Andrew
Mathias. TRD