The Real Deal New York

Sutton, SL Green turn to familiar face for $225M refi at 650 Fifth

Aareal Bank previously lent $97M on the retail leasehold
By Konrad Putzier | October 10, 2017 08:02PM

From left: Jeff Sutton, SL Green’s Marc Holliday and Aareal’s Hermann Merkens

SL Green Realty and Jeff Sutton refinanced their retail space at 650 Fifth Avenue with a $225 million leasehold mortgage from German lender Aareal Bank.

The debt deal comes 10 months after Nike agreed to a 60,000-square-foot lease with an annual rent starting at $35 million — one of the priciest retail leases in the city’s history.

The new loan agreement replaces a previous $97 million mortgage, also from Aareal, from October 2014, and includes a $128 million gap mortgage.

Sutton and SL Green took control of the retail leasehold in 2013. The Alavi Foundation, which is said to be controlled by the Iranian government, held a 60 percent stake in the tower. A federal jury in June ordered the seizure of the stake, which was reaffirmed by a Manhattan Supreme Court judge last month.

In January, Aareal refinanced SL Green and Sutton’s 724 Fifth Avenue, home to Prada’s flagship store, with a $235 million loan.