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