Gazit refinances Upper East Side retail hub for $134M

Permanent credit term lease bond applies to incoming Home Depot

New York /
Aug.August 10, 2021 01:45 PM
Gazit refinances Upper East Side retail hub for $134M

Gazit Globe CEO Chaim Katzman, 410 East 61st Street (Google Maps, LinkedIn)

The site of Manhattan’s retail lease of 2020 is now subject to a major refinancing.

Gazit Horizons, a subsidiary of Israeli investment firm Gazit Globe, has refinanced its retail property at 410 East 61st Street for $134.4 million in permanent credit term lease bond financing, Commercial Observer reported.

The bond was secured by both the retail property and the lease for the incoming Home Depot and is intended to generate a stronger profit on investment and hedge against interest rate increases, according to Gazit.

Mesirow Financial is responsible for issuing and placing the bonds per the structure of the credit term lease financing. The financing will carry a fixed-rate of 3.295 percent. Gazit generated approximately $30 million in proceeds on its initial investment from the refinancing.

Home Depot is set to move to the location after signing a 20-year lease for the property in October. Comprising 120,000 square feet, the lease was the largest in Manhattan in 2020 both in terms of size and rent. The company will be paying approximately double the rent paid by the previous tenant, Bed Bath & Beyond.

Gazit Horizons acquired its interest in the property over the course of two deals in 2017 and 2018 for approximately $80 million. The company is expected to deploy $20 million to prepare the property for Home Depot, which hopes to move into the space over the next couple of years.

[CO] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    53 Sonrise Place in Fellsmere, FL and Starwood Capital Group chairman Barry Sternlicht (Google Maps, Illustration by The Real Deal with Getty)
    Starwood snaps up Florida affordable housing portfolio
    Starwood snaps up Florida affordable housing portfolio
    Carpenter & Company's Richard Friedman and 2 Canal Street in New Orleans (Carpenter & Company, Google Maps)
    New Orleans Four Seasons lands $315M loan from Madison Realty Capital
    New Orleans Four Seasons lands $315M loan from Madison Realty Capital
    HUBB’s John McCarthy, Greystone's Thomas Ryan and 223-225 4th Avenue (Google Maps, Greystone, Getty)
    HUBB NYC continues 421a spending spree, buying Park Slope building
    HUBB NYC continues 421a spending spree, buying Park Slope building
    120 East 39th Street (Hotels, Getty)
    Short-term rental company taking over Midtown hotel
    Short-term rental company taking over Midtown hotel
    One Soho Square with Stellar Management’s Larry Gluck and Yotpo CEO Tomer Tagrin (LoopNet, Twitter, Gluck Family Foundation)
    Yotpo inks 30K sf sublease at Stellar’s One Soho Square
    Yotpo inks 30K sf sublease at Stellar’s One Soho Square
    From left: Landlord Steve Croman and White Horse Tavern owner Eytan Sugarman along with the White Horse Tavern at 567 Hudson Street (Getty Images, Google Maps, Instagram/boyfromnewyorkcity)
    Croman sues White Horse Tavern owner for $650K back rent
    Croman sues White Horse Tavern owner for $650K back rent
    Blackstone's Stephen Schwarzman and 8 Spruce Street (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images and Twitter/AAsArchitecture)
    Blackstone’s 8 Spruce sues tenant over alleged pop-up restaurant
    Blackstone’s 8 Spruce sues tenant over alleged pop-up restaurant
    A photo illustration of Tishman Speyer CEO Rob Speyer and 28-10 Jackson Avenue in Long Island City (Getty Images, Tishman Speyer, Google Maps)
    LIC tenant claims Tishman Speyer violated rent stabilization
    LIC tenant claims Tishman Speyer violated rent stabilization
    arrow_forward_ios

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

    Loading...