Michael Shvo, partners secure $545M loan for Coca-Cola building

The debt was provided by Goldman Sachs and Bank of America

TRD New York /
Mar.March 09, 2020 01:25 PM
 
The Coca-Cola building at 711 Fifth Avenue and Michael Shvo (Credit: Google Maps)

The Coca-Cola building at 711 Fifth Avenue and Michael Shvo (Credit: Google Maps)

A partnership led by Michael Shvo has secured a $545 million loan to refinance the Coca-Cola building, The Real Deal has learned.

The loan, provided by Goldman Sachs and Bank of America, will replace $600 million debt at the iconic property at 711 Fifth Avenue. The transaction closed last week, according to people familiar with the deal. JLL represented Shvo’s group.

Goldman Sachs declined to comment. Bank of America did not respond to a request for comment.

Shvo’s group — which includes Turkish developer Bilgili Holding, private equity firm Deutsche Finance America and German pension fund Bayerische Versorgungskammer (BVK) — acquired the property in September for $937 million.

The new loan covers only 90 percent of the existing debt at the building, provided by JPMorgan. The bank initially held $700 million debt in the building, but $100 million was paid off by BVK, the primary equity partner, when the acquisition occurred. Alongside the new financing, BVK poured an additional $55 million into the building to cover the difference, a person familiar with the transaction said.

Shvo’s takeover of the building has been closely watched. Last year, the building’s namesake owner, the Coca-Cola Company, snubbed Shvo’s group and chose to sell it to a partnership consisting of Nightingale Properties and Wafra Capital Partners for $909 million — almost $50 million lower than Shvo’s initial offer.

Weeks after the building sold to Nightingale’s group in September, the building was effectively flipped to Shvo’s group in a transaction that valued the building at $937 million. Questions were later raised about why Coca-Cola overlooked a higher bid, and what advice it received from its brokers at Cushman and Wakefield.


Related Articles

arrow_forward_ios
Denizen Bushwick at 54 Noll Street (Photos via Denizen Bushwick)

All Year nears $650M financing for Bushwick luxury rentals

All Year nears $650M financing for Bushwick luxury rentals
Michael Shvo and the Transamerica Building in San Francisco and  (Unsplash)

Shvo, Deutsche Finance close on Transamerica Pyramid for $650M

Shvo, Deutsche Finance close on Transamerica Pyramid for $650M
Serdar Bilgili and Michael Shvo (Illustration by Paul Dilakian for The Real Deal)

Inside the ugly dispute between Michael Shvo and his partner pal

Inside the ugly dispute between Michael Shvo and his partner pal
What tenants are paying at Shvo’s “Big Red” building

What tenants are paying at Shvo’s “Big Red” building

What tenants are paying at Shvo’s “Big Red” building
Michael Shvo and a rendering of the project

Michael Shvo’s proposed Miami Beach tower gets haircut and approval

Michael Shvo’s proposed Miami Beach tower gets haircut and approval
AIG, Goldman lend on Shvo’s “Big Red” buy in Chicago

AIG, Goldman lend on Shvo’s “Big Red” buy in Chicago

AIG, Goldman lend on Shvo’s “Big Red” buy in Chicago
Michael Shvo and Serdar Bilgili in December 2019 (Getty, iStock)

Bilgili wants Shvo to open his books

Bilgili wants Shvo to open his books
Michael Shvo and a rendering of the tower (City of Miami)

Shvo’s proposal for Miami Beach resi tower faces opposition

Shvo’s proposal for Miami Beach resi tower faces opposition
arrow_forward_ios

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

Loading...