Rudin borrows $425M to refinance 32 Sixth Avenue

The CMBS-backed loan was underwritten by JPMorgan Chase and Deutsche Bank

TRD New York /
Oct.October 22, 2015 04:25 PM

Rudin Management is taking advantage of low interest rates while they last, signing a $425 million loan to refinance its 32 Sixth Avenue office tower.

The 10-year loan, which will be sold off as commercial mortgage-backed securities, was underwritten by JPMorgan Chase and Deutsche Bank.

Rudin incurred a $26.2 million termination fee for early payment of its previous $360 million loan, which was also securitized, according to Trepp. That loan was set to expire in April 2017.

Bill Rudin, the firm’s CEO, defended the decision, saying the fee was worth locking in low rates.

“We liked where the interest-rate market is today and thought this was an opportune time to refinance on a long-term basis,” Rudin told Crain’s. “In two years from now, we think rates will be significantly higher than where they are now.”

Rudin bought the landmarked, 1.1-million-square-foot Tribeca office building, also known as the AT&T Long Distance Building, in 1999. Telecom and communications companies including Qwest Communications, Telx, Tata Communication, Dentsu Aegis and the Cambridge University Press make their home at 32 Sixth Avenue. [Crain’s]Ariel Stulberg

Related Articles

461 West 34th Street with Marx Development Group's David Marx (Credit: Google Maps)

David Marx lands $202M refi for Hudson Yards hotel

WeWork's co-CEO Sebastian Gunningham speaks at the launch of Dock 72

What, We Worry? Execs remain confident in WeWork-anchored Brooklyn project

70 Pine Street and Goldman Sachs chairman Lloyd Blankfein (Credit: Wikipedia and Getty Images)

Goldman Sachs refis Art Deco apartment conversion at 70 Pine with $386M loan

329 Broadway and JLJ CEO Jonathan Lewis (Credit: Syndicate Architecture via CityRealty, Google Maps)

Williamsburg developer lands $57M refi to complete 329 Broadway

M&T CEO René Jones and Brookfield managing partner Ben Brown with 5 Manhattan West (Credit: M&T, Brookfield, and Wikipedia)

Brookfield lands $184M refinancing for Manhattan West retail

(Credit: iStock)

Despite housing market slowdown, mortgage lenders just had a great second quarter

Bill Rudin and One Whitehall Street and 110 Wall Street

Rudins planning for family estate with rare building sales

Rudin Management's Bill Rudin and Michael Rudin with 110 Wall Street (Credit: Getty Images and Google Maps)

Rudin Management’s 110 Wall, home to WeLive, comes to market