The Real Deal New York

Orda Management secures $430M refi for 225-233 PAS

Barclays PLC is the lender for the two connected office buildings
June 05, 2017 08:50AM

The owner of a Midtown South office property that houses BuzzFeed and Facebook just picked up $430 million in financing.

Barclays PLC provided the 10-year, fixed-rate loan for the connected buildings at 225-233 Park Avenue South to Orda Management Corp., the Wall Street Journal reported. Orda, which is led by Morton Silver, will use the money to repay a previous $217 million loan provided by the New York State Teachers Retirement System. The financing will also help recover $135 million spent on renovations over the past 18 months.

Featuring two connected buildings, the property at 225-223 Park Avenue South spans 675,000 square feet, and is almost 100 percent leased. Facebook grabbed about 190,000 square feet last year, and BuzzFeed inked a lease for 194,000 square feet in 2014. Other tenants include T. Rowe Price, which signed a lease for 13,000 square feet in March.

A team led by Newmark Knight Frank’s Jordan Roeschlaub brokered the financing from Barclays.

Leasing has slumped in Midtown South in recent months, with the availability rate in March at 10.9 percent, according to an analysis by CBRE. [WSJ]Miriam Hall