Boston Properties lands $2.3B loan for
GM Building

Deal marks the biggest NYC mortgage provided since 2015

TRD New York /
Apr.April 26, 2017 11:00 AM

General Motors Building and Owen Thomas

Boston Properties has reached a deal to refinance the GM Building with a $2.3 billion mortgage from a group of unidentified lenders, the real estate investment trust announced during an earnings call Wednesday.

The 10-year loan, which carries a 3.43 percent fixed interest rate, replaces a $1.6 billion package of senior and mezzanine financing with a 6 percent interest rate that expires in October. Boston Properties’ CFO Michael LaBelle said he expects the new loan to close in June and save the company $9 million in interest payments per year compared to the old mortgage.

Boston Properties TRData LogoTINY bought the 1.8 million-square-foot Midtown office tower at 767 Fifth Avenue for $2.9 billion in 2008 from Harry Macklowe. One of the property’s biggest tenants, Estee Lauder, has a 300,000-square-foot lease expiring in 2020 and Boston Properties’ president Douglas Linde said during the call that he does “not think they have made a decision yet” over whether to renew the lease or move.

The new mortgage is one of the largest commercial real estate loans ever recorded for a single building. It is also the largest mortgage the New York market has seen since Blackstone Group and Ivanhoe Cambridge borrowed $2.7 billion from Wells Fargo to finance their $5.3 billion acquisition of the Stuyvesant Town-Peter Cooper Village housing complex in late 2015.

(To view more commercial sales transactions that involve Boston Properties, click here)


Related Articles

arrow_forward_ios

Real estate stocks push up this week as U.S.-China trade tensions ease

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

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

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

Joel Schreiber (Credit: Shir Stein and Wikipedia)

WeWork’s first investor used his stock as collateral. Now his lenders are suing him

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

163 North 6th Street and the Tel Aviv Stock Exchange Bull (Credit: Google Maps, Wikipedia)

Joel Gluck’s Israeli bond issuance falls through as Williamsburg rental project faces financing crunch

NYC’s foreign investment landscape in the era of trade wars and heightened nationalism

Larry Silverstein and the Tel Aviv Stock Exchange (Credit: Getty Images)

Institutional investors swarm Silverstein’s new TASE bonds

arrow_forward_ios