Sabey lands $250M refi for 375 Pearl Street

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

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.

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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