Durst secures $1B loan package from group led by Citi’s private bank

Financing includes $400M credit line

New York /
Jul.July 13, 2017 12:00 PM

The Durst Organization secured a $1 billion financing package from a group of lenders led by Citi Private Bank, with plans to potentially use some of the money for acquisitions.

The package includes $600 million in mortgage debt on five Manhattan properties and a $400 million credit line, Durst’s chief financial officer Ira Marx told The Real Deal. Citi chipped in $650 million, JPMorgan Chase $100 million, TD Bank $100 million, Bank of New York Mellon another 100 million and California-based City National Bank added $50 million.

The properties supporting the mortgage are 655 Third Avenue, 825 Third Avenue, 114 West 47th Street (the three buildings previously had a combined $300 million in mortgages, which the new loan replaces), 675 Third Avenue and 201 East 42nd Street (the two buildings previously had no mortgage debt, according to Marx).

Marx argued that the advantage of taking out a single loan package, as opposed to negotiating mortgages one by one, is that it’s cheaper and saves time. “If you take the bus to the train it takes more time even if it’s the same distance,” he said.

The new $400 million credit line expands the firm’s previous credit line by $100 million. Being able to draw on that much debt can allow an investor to quickly close on properties — a key advantage in a fast moving market.

In December, for example, Durst went into contract and closed on the $175 million acquisition of the Clocktower development site in Long Island City on the same day.  The firm plans to build a 63-story rental tower on the site and is also working on the seven-building, $1.5 billion Hallets Point development on the Queens waterfront.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
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
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Turnbridge Equities founder Andrew Joblon, KKR co-founder Henry Kravis and the distribution center (Getty, Turnbridge)
Turnbridge, Dune land $381M loan for Hunts Point site
Turnbridge, Dune land $381M loan for Hunts Point site
Vanbarton Group’s Gary M. Tischler and Richard Coles with Marble Collegiate Church at 1 West 29th Street (Getty)
Vanbarton Group, church sued by foreign investors in fallout from HFZ debacle
Vanbarton Group, church sued by foreign investors in fallout from HFZ debacle
One World Trade Center with Constellation Agency co-founders Diana Lee and Matt Woodruff (iStock, Constellation Agency)
Constellation Agency leases 21st floor of One WTC
Constellation Agency leases 21st floor of One WTC
Northwind Group managing partner Ran Eliasaf and 165 Lexington Avenue (Northwind Group, Brooklyn North Capital)
Brooklyn North Capital, RiverBrook score $49M loan for Kips Bay condo
Brooklyn North Capital, RiverBrook score $49M loan for Kips Bay condo
One man, two companies, three bankruptcies
One man, three bankruptcies: Verrino Construction files for Chapter 7
One man, three bankruptcies: Verrino Construction files for Chapter 7
Maverick Real Estate Partners principal David Aviram and 416 West 25th Street (Google Maps and LinkedIn)
Maverick denied yet again in battle over Chelsea rental
Maverick denied yet again in battle over Chelsea rental
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...