The pension fund that owns 590 Madison Avenue – The Plaza District office tower that house financial services firms UBS, Morgan Stanley and Bain Capital – is seeking a loan valued at up to $650 million.
The State Teachers Retirement System of Ohio has retained a Cushman & Wakefield team of Steve Kohn, Alex Hernandez, Chris Moyer and Alex Lapidus to source the funds, which could be one of the largest loans to close this year. The pension fund put a stake in the 42-story tower on the market last October, when the building was valued at $1.5 billion.
As the amount the owners are seeking comes out to an LTV of around 45 percent, it is likely to prove an appealing proposition for banks, funds and alternative lenders, according to the New York Observer.
Goldman Sachs last refinanced 590 Madison Avenue, previously known as the IBM Building, in 2007, providing the pension fund with $350 million. Developer Edward Minskoff handles rentals at the building and developed the property in 1983.