Deutsche, HSBC to lead $800M 28 Liberty refi

Lenders will syndicate loan; Natixis and Credit Agricole likely to come in

TRD New York /
Oct.October 20, 2017 12:15 PM

Fosun’s Bo Wei and 28 Liberty

Deutsche Bank and HSBC have term sheets out to refinance Fosun International’s 2.1 million-square-foot 28 Liberty office tower in Lower Manhattan to the tune of $800 million, sources told The Real Deal.

The banks plan to close the floating-rate, six-year loan before Thanksgiving and then syndicate the deal, at which point Natixis and Credit Agricole are likely to come in, sources with knowledge of the deal said.

The lenders will provide $500 million in debt at closing, and another $300 million down the line to be used for capital improvements and upgrades to the tower.

Representatives for Fosun, a Chinese conglomerate, could not be immediately reached for comment. CBRE brokers James Millon and Tom Traynor secured the financing on behalf of the borrower. They declined to comment.

Fosun first went out to the market in July to refinance the former JPMorgan Chase headquarters, which they bought for $725 million in 2013 in an all-cash deal, as TRD originally reported.

The new financing works out to a loan-to-value ratio of 55 percent. Fosun boosted occupancy in the tower, which was below 50 percent when JPMorgan left, to 72 percent with deals like a 345,000-square-foot lease with the New York State Attorney General’s office.

The law firm Milbank, Tweed, Hadley & McCloy will vacate the top floors of the tower when it relocates to 55 Hudson Yards. The firm is paying below-market rents of about $42 per square foot.

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