Solow secures $625M loan on 9 West 57th St.

New York /
Dec.December 27, 2011 09:12 AM

alternate
text
From left: Sheldon Solow and 9 West 57th Street
Developer Sheldon Solow has obtained a $625 million loan on 9 West 57th Street from Deutsche Bank, which beat out AIG and JPMorgan Chase to provide financing for the trophy property, Bloomberg News reported.

The loan refinances debt set to mature in February that Solow took out at the height of the bubble in 2007. About $55 billion of property loans are set to come due in 2012, and $19 billion of them were originated at the height of the bubble. But most of them will struggle to refinance, Standard & Poor’s predicted, as property values have decreased about 42 percent from the peak.

In this case, several parties competed for Solow’s refinancing because of the location and prestige of the building, exemplifying the demand for prime buildings, Bloomberg said. The 50 story building just west of Fifth Avenue is worth about $1.5 billion, according to Real Capital Analytics.

Though the 1.6 million square foot office building has substantial vacancies, much of that is due to Solow’s unwillingness to come down on rents, which remain among the highest in all of Manhattan.

“He’s fortunate enough to have very low leverage on the building which allows him to carry the vacancy,” said Dan Fasulo, a managing director at Real Capital Analytics. “He could lease those floors tomorrow if he wanted too.” [Bloomberg News]


Related Articles

arrow_forward_ios
cliffside, building, money
$16B in CMBS loans nearing cliff in NYC
$16B in CMBS loans nearing cliff in NYC
CW Realty's Cheskie Weisz and 187 Kent Avenue (CW Realty, The Kent House, Getty)
Kent House owners refi Williamsburg rental after dodging foreclosure
Kent House owners refi Williamsburg rental after dodging foreclosure
From left: QIA's Mansoor Bin Ebrahim Al-Mahmoud, Scott Rechler, and Meyer Orbach with One Sutton Place North
Rechler, Qataris join Orbach and Gotlib’s $850M apartment deal
Rechler, Qataris join Orbach and Gotlib’s $850M apartment deal
Meyer Orbach with One and Two Sutton Place North (CityRealty)
Meyer Orbach, Josh Gotlib close on $850M of Solow apartments
Meyer Orbach, Josh Gotlib close on $850M of Solow apartments
Soloviev Group chairman Stefan Soloviev and the Solow Building at 9 West 57th Street (Getty, Soloviev Group, King of Hearts, CC BY-SA3.0 - via Wikimedia Commons)
Soloviev denies effort to sell 9 West 57th
Soloviev denies effort to sell 9 West 57th
(Photo Illustration by Steven Dilakian for The Real Deal with Getty)
Borrowers are back: Mortgage applications rise
Borrowers are back: Mortgage applications rise
Illustration of Stefan Soloviev (HaydenSoloviev, CC BY-SA 4.0, via Wikimedia Commons, Getty)
Soloviev bets long-dormant Midtown East site in casino sweepstakes
Soloviev bets long-dormant Midtown East site in casino sweepstakes
Empire Capital Holdings' Josh Rahmani, Hakimian Capital's Michael Hakimian, RXR's Scott Rechler and 1330 6th Avenue (Getty, Hakimian Capital, Empire Capital Holdings, 1330aofa.com)
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
Empire Capital, partners close on $320M deal for 1330 Sixth Ave
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...