Sabey lands $250M refi for 375 Pearl Street

Wells Fargo, JPMorgan provided a $220M CMBS loan and $30M in mezzanine debt

New York /
Jun.June 21, 2021 11:40 AM
From left: Sabey Corporation CEO John Sabey, National Real Estate Advisors CEO Jeffrey Kanne and 375 Pearl Street (Sabey, National Real Estate Advisors, Tdorante10/Wikimedia)

From left: Sabey Corporation CEO John Sabey, National Real Estate Advisors CEO Jeffrey Kanne and 375 Pearl Street (Sabey, National Real Estate Advisors, Tdorante10/Wikimedia)

Sabey Corporation and National Real Estate Advisors secured a $250 million refinancing deal for the former Verizon office tower at 375 Pearl Street.

Lenders Wells Fargo and JPMorgan provided a $220 million, 10-year, fixed-rate loan package for the office condo, which includes an additional $30 million in mezzanine debt, Commercial Observer reported Friday.

The CMBS loan is backed by 573,000-square-feet of office condominiums located in the 16-floor portion of the 32-story office and data center building, which Sabey purchased with then-partner Youngwoo & Associates for $120 million out of foreclosure in 2011.

Loan proceeds will be used to pay off $234 million in existing debt and return $6.5 million in equity to the owners, in addition to paying other costs, Commercial Observer reported.

The building was once known as one of the ugliest buildings in the city. But the owners spent a reported $159 million to convert former data center space into Class A offices, replacing the facade of higher floors with a glass curtain wall. The office condos are now 100 percent leased to tenants including Rafael Viñoly Architects, which purchased 36,500 square feet of space for $36 million last year.

When the owners completed the major facelift, they reportedly sought to sell the office condos for an asking price north of $300 million in 2018. [CO] — Akiko Matsuda





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