RFR Realty nabbed $100 million in refinancing for the 12-story office property at 345 Park Avenue South in the red-hot Midtown South market, Crain’s reported. The refinance, which Citibank handled, values the block-long property at roughly $180 million.
“We had another two years on the debt, but just like Seagram we were paying around 5.5 percent and saw the opportunity to take advantage of a loan with better rates,” RFR’s Chief Investment Officer Mark Weiss told Crain’s.
The new loan on the property has a 4 percent rate and a 10-year term.
The building is fully leased to ad agency Digitas, whose lease expires in eight years — before the loan expires.
“That might have been an issue for a building on Sixth Avenue with vacancy but not in Midtown South,” Weiss told Crain’s. “There’s a confidence that the startup companies and tech people and advertising firms all want to be here in Midtown South.” [Crain’s] –Zachary Kussin