Apollo to provide $800M loan for Crown Building

Wharton Properties and Brookfield closed on the loan with Apollo Global Management on Monday.

New York /
Aug.August 26, 2019 04:27 PM
From left: Jeff Sutton, Brookfield's Ric Clark, and Apollo's Leon Black with the Crown Building

From left: Jeff Sutton, Brookfield’s Ric Clark, and Apollo’s Leon Black with the Crown Building

The owners of the Crown Building’s commercial portion have secured an $800 million loan to refinance the property, The Real Deal has learned.

Jeff Sutton’s Wharton Properties and Brookfield Asset Management closed on the loan Monday, according to people involved in the deal. Apollo Global Management will provide the $807.5 million loan at between 3- and 3.5 percent interest.

Last month, TRD reported that Apollo and French lender Natixis had signed a term sheet with the landlord, but Natixis walked from deal soon after, sources said. Apollo will now provide the loan without syndication.

The new loan will refinance $720 million in debt backing the commercial portion of the property.
In 2015, Wharton joined with General Growth Properties to acquire the 390,000-square-foot building for $1.8 billion from Eliot Spitzer’s Spitzer Enterprises, a transaction that was in part financed by a $1.3 billion loan from a Deutsche Bank-led syndicate.

After that sale closed, the Wharton and GGP sold the upper 20 floors for $500 million to developers Michael Shvo and Vladislav Doronin. GGP was later acquired by Brookfield, which became the de facto part-owner.

Aaron Appel and Keith Kurland, who recently left JLL to launch their own firm, AKS Partners, represented the borrower. They declined to comment. Sutton declined to comment. Representatives for Brookfield, Apollo and Natixis could not be immediately reached for comment. Sutton could not immediately be reached for comment.

It is the second major deal between Brookfield and Apollo in the past year. In November, Apollo provided Brookfield with a $300 million mezzanine loan for 666 Fifth Avenue, the Midtown tower Brookfield leases from Kushner Companies. That loan was part of a $1 billion financing package backed by Citi Group and ING.


Related Articles

arrow_forward_ios
State Sen. Brad Hoylman and State Assemblymember Harvey Epstein (Getty)
Lawmakers propose canceling restaurant rent, providing relief for landlords
Lawmakers propose canceling restaurant rent, providing relief for landlords
Columbia University
Columbia University inks deals with 2 restaurants
Columbia University inks deals with 2 restaurants
(iStock/Illustration by Kevin Rebong for The Real Deal)
Year from Hell: 80% of Brooklyn businesses saw revenue drop
Year from Hell: 80% of Brooklyn businesses saw revenue drop
Macerich CEO Thomas O'Hern and PJT Partners CEO Paul Taubman (Macerich, PJT)
Macerich taps PJT Partners for assistance
Macerich taps PJT Partners for assistance
Gucci at Trump Tower (Getty)
Gucci renews lease in Trump Tower
Gucci renews lease in Trump Tower
Kohl's investors have a list of changes they want implemented. (Getty)
Activist investors urge Kohl’s to cut real estate, inventory
Activist investors urge Kohl’s to cut real estate, inventory
New Yorkers can enjoy going to the movies again on March 5. (iStock)
Showtime: NYC movie theaters to reopen
Showtime: NYC movie theaters to reopen
2 Ninth Ave (Google Maps, Lucid Motors)
Lucid Motors inks Meatpacking District lease
Lucid Motors inks Meatpacking District lease
arrow_forward_ios

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

Loading...