The Real Deal New York

With huge refi, Moinian to take complete control of 3 Columbus Circle

The firm will buy out Young & Rubicam’s space in the building
March 13, 2019 04:33PM

3 Columbus Circle and Moinian Group CEO Joseph Moinian (Credit: Moinian Group)

UPDATED, March 14, 12:42 p.m.: Moinian Group has closed on refinancing deal that will allow it to take full ownership of 3 Columbus Circle.

The developer and investor landed a $595 million deal with JP Morgan and Deutsche Bank, Commercial Observer reported. The 10-year loan will carry a 3.91 percent interest rate. Moinian will use the financing to buy out Young & Rubicam, which owns a six-story office condominium at the building, the report said.

Moinian will pay $266 million for Y&R’s 214-372-square-foot space. The marketing agency bought the space for $143.6 million in 2012 and is the anchor tenant for the remaining space that Moinian owns. The deal, in the works since December last year, originally was planned as a $300 million loan — but was increased to account for the buyout.

Y&R leased back the space in a deal led by CBRE’s Mary Ann Tighe, Greg Tosko and Lauren Crowley.

Moinian owned the office tower with SL Green Realty until last year, when Moinian paid $233 million for SL Green’s 48.9 percent stake. The tower was valued at $1 billion as of December, the report said. Moinian bought the building for $250 million in 2004. [CO] — Meenal Vamburkar