Empire State Realty Trust now has access to a lot more capital

$1.4B credit facility includes option to increase borrowing

New York /
Sep.September 05, 2017 01:45 PM

Maybe it’s time to buy some buildings again? Empire State Realty Trust landed a new $1.365 billion credit facility from a consortium of banks with an option to increase it to $1.75 billion, the real estate investment trust announced Tuesday.

The financing package includes a $1.1 billion revolving credit facility and a $265 million term loan. Merrill Lynch, Wells Fargo, Pierce, Fenner & Smith, Capital One, Goldman Sachs, JPMorgan Chase and Barclays Bank participated in the facility, among other lenders.

The new facility replaces a previous facility of the same amount that was set to expire in January 2019 and comes with slightly lower interest rates (1.2 percentage points over the Libor benchmark rate for the term loan, compared to 1.6 under the old deal). The credit facility runs through August 2021 and can be extended by six months and the term loan through August 2022.

The new facility gives Empire State access to plenty of capital should it chose to buy again. The owner of the Empire State Building hasn’t bought a major property since 2014, but earlier this year the firm’s COO John Kessler said it is considering acquisitions. “We continue to pursue off-market opportunities,” he said during an earnings call.

Empire State isn’t the first Manhattan landlord to take advantage of low interest rates this year. In July, the Durst Organization landed a $1 billion financing package from a group of banks, including a $400 million credit facility.


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
Democrats' numerous attempts to close the carried-interest loophole have failed
Developers, rejoice: Carried-interest loophole is saved again
Developers, rejoice: Carried-interest loophole is saved again
257-263 West 34th Street and Cornell Realty’s Isaac Hager (Google Maps, Getty)
Isaac Hager seeks bankruptcy for Penn Plaza stake, but Churchill resists
Isaac Hager seeks bankruptcy for Penn Plaza stake, but Churchill resists
RXR CEO Scott Rechler and 620 Sixth Avenue (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images, Beyond My Ken, CC BY-SA 4.0 - via Wikimedia Commons)
RXR sues insurers over infectious disease coverage
RXR sues insurers over infectious disease coverage
(Illustration by The Real Deal with Getty Images)
Hamptons rental where fire killed 2 skipped safety inspection
Hamptons rental where fire killed 2 skipped safety inspection
Colette at 767 Fifth Avenue and restaurateur Juan Santa Cruz (Colette, Getty,Pablo Costa Tirado (…, CC BY-SA 3.0, via Wikimedia Commons)
Want to join Safra’s private club at GM Building? It’ll cost you $125K
Want to join Safra’s private club at GM Building? It’ll cost you $125K
Tavros Capital’s Nicholas Silvers and Charney Companies’ Sam Charney in front of 24-05 thru 24-19 Jackson Avenue in Long Island City (Getty Images, Tavros Capital, Charney Companies, Google Maps)
Tavros, Charney plan 55-story rental on long-stalled site
Tavros, Charney plan 55-story rental on long-stalled site
arrow_forward_ios

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

Loading...