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

Aareal Bank previously lent $97M on the retail leasehold

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

Sign Up for the undefined Newsletter

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.