Deutsche, HSBC to lead $800M 28 Liberty refi

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

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

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.


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
The New York Life Sciences and Biotechnology Center at First Avenue and 41st Street (NY Life Sciences)
Life sciences leasing breaks annual record in five months
Life sciences leasing breaks annual record in five months
The commercial market was hit hard by the pandemic, and property tax revenue is expected to fall 5 percent. (iStock)
Tax bills show how much Covid devalued NYC real estate
Tax bills show how much Covid devalued NYC real estate
Richard Segal of Seavest Investment Group, David Marx of Marx Development Group and 902 Quentin Road in Brooklyn (Photos via Seavest Investment Group, Marx Development Group and VRMNY)
Westchester firm buys $54M Brooklyn medical building
Westchester firm buys $54M Brooklyn medical building
1133 Sixth Avenue, 114 West 47th Street, 537 Greenwich Street and 55 Broadway (Tdorante10/Wikimedia, Durst Organization, Easter Consolidated Google Maps)
These were the largest Manhattan real estate loans in May
These were the largest Manhattan real estate loans in May
Acting Katara CEO Andrew Humphries and 355 West 16th Street (Google Maps, AHIC)
Katara Hospitality takes over Dream Downtown’s $125M ground lease
Katara Hospitality takes over Dream Downtown’s $125M ground lease
Real Estate EFTs See Investment Amid Pandemic Recovery
Why investors are rushing into real estate ETFs
Why investors are rushing into real estate ETFs
arrow_forward_ios

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

Loading...