PBC nears $385M loan for HSBC tower after sale to Innovo collapses

PBC will keep $35M deposit from Innovo, which had struggled to secure financing for the deal

New York /
May.May 26, 2022 10:50 AM
Eli Elefant and 452 5th Avenue (IAVA, Property Building Corp)

Eli Elefant and 452 5th Avenue (IAVA, Property Building Corp)

Property and Building Corporation is close to landing a $385 million refinancing for its HSBC tower in Midtown after Innovo Property Group’s bid to purchase the building collapsed.

JPMorgan plans to provide the loan at a rate of 3.9 percent, according to a source familiar with the deal and filings on the Tel Aviv Stock Exchange. It will replace an existing $380 million loan.

PBC also plans to renovate and modernize the building at 452 Fifth Avenue instead of selling it, the source said. PBC will keep Innovo’s $35 million deposit.

The $855 million sale to Andrew Chung’s Innovo fell apart after HSBC’s recent announcement that it would leave the Fifth Avenue building and move to Hudson Yards. Rising interest rates could also have been a factor.

Innovo was also unable to close on financing for the acquisition. Chung’s firm was shopping around for different sources of financing for months, according to sources. Innovo ultimately missed its May 16 deadline to close on the deal.

PBC, led by Eli Elefant , bought the 30-story tower at 452 Fifth Avenue for $330 million, or $381 per square foot, in 2010 from HSBC, as the bank was selling off its office properties in the wake of the financial crisis.

PBC put $2 billion in U.S. real estate assets on the market in December while its parent company seeks to reinvest in Israel.

The company, an affiliate of Israeli holding company Discount Invest­ment, tapped Eastdil Secured’s Roy March and Gary Phillips to market the Midtown property. The building was expected to go for around $850 million, or $982 per square foot.





    Related Articles

    arrow_forward_ios
    From left: Bert H. Dweck and Joe Sitt with 790 Madison Avenue (Premier Equities, Google Maps)
    Joe Sitt, Bert Dweck settle Madison Ave dispute with fashion house
    Joe Sitt, Bert Dweck settle Madison Ave dispute with fashion house
    IBM's Arvind Krishna and One Madison Avenue (IBM, One Madison Avenue, Illustration by Kevin Cifuentes for The Real Deal)
    IBM CEO: Only 60% of office workers will ever return full-time
    IBM CEO: Only 60% of office workers will ever return full-time
    Marcus & Millichap Associate David Ferber in front of part of the 30-building, 319-unit portfolio concentrated in Jersey City (Marcus and Millichap, iStock)
    Hot rental market boosts NJ multifamily despite rate hikes
    Hot rental market boosts NJ multifamily despite rate hikes
    Orbach Affordable Housing Solutions' Meyer Orbach and One East River Place (Orbach Housing, Google Maps)
    Black Spruce, Orbach strike $1.8B NYC multifamily deal
    Black Spruce, Orbach strike $1.8B NYC multifamily deal
    Industrious co-founder Justin Stewart and 25 Broadway/Cunard Building (LinkedIn, Tdorante10/CC BY-SA 4.0/via Wikimedia)
    Industrious partners with Wolfson for 44K sf at Cunard Building
    Industrious partners with Wolfson for 44K sf at Cunard Building
    The Indie Cultivate event and Independent Lodging Congress president Andrew Benioff (Independent Lodging Congress)
    Is innovation dead? These real estate disruptors say no
    Is innovation dead? These real estate disruptors say no
    Bentley Zhao and 58-01 Queens Boulevard (New Empire Real Estate, Google Maps, iStock)
    New Empire plans ambitious condo in quiet Woodside
    New Empire plans ambitious condo in quiet Woodside
    Rudin Management CEO Bill Rudin and 3 Times Square (Getty Images, 3 Times Square, iStock)
    Rudin gets $415M refi for 3 Times Square makeover
    Rudin gets $415M refi for 3 Times Square makeover
    arrow_forward_ios

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

    Loading...