The Real Deal New York

575 Lex owners secure $415M refi loan

The financing will be used to refresh a 2015 loan from Wells Fargo
June 27, 2018 09:45AM

Left to right: Cushman and Wakefield’s Steven Kohn, Normandy Realty’s Finn Wentworth, Paramount Group’s Albert Behler, and 575 Lexington Avenue (Credit: Normandy Realty, Cushman and Wakefield, and 575 Lexington Ave)

The owners of 575 Lexington have secured a $415 million refinancing loan from Paramount Group.

Normandy Real Estate Partners, Angelo Gordon & Co. and George Comfort & Sons in 2015 bought the 34-story tower in 2015 for $510 million.

The new loan will replace a Wells Fargo loan obtained by the owners in 2015, according to Commercial Observer. The financing makes up just over 50 percent of the closing value of $775 million parent debt fund, Paramount Fund VIII.

A Cushman & Wakefield team represented the owners in the deal.

In November, financial services firm Janney Montgomery Scott moved out of the Lexington Avenue tower and shifted to 1166 Sixth Avenue. Law firm Boies, Schiller & Flexner, which currently has around 100 lawyers stationed in the building, inked a 83,000-square-foot deal in 55 Hudson Yards in 2015.

The Midtown East tower is 86 percent occupied, according to the report.

Earlier this month, The Real Deal reported that Normandy is actively looking to refinance three other office buildings it plans to overhaul. [CO] — David Jeans