The State Teachers Retirement System of Ohio wants 590 Madison Avenue all to itself.
The pension fund chose to refinance its mortgage on the former IBM building rather than selling a minority stake, securing a fixed-rate $650 million loan from Goldman Sachs Mortgage Co.
Cushman & Wakefield represented STRS Ohio in the deal.
The fund had initially sought to sell a 49 percent equity stake in the Midtown office tower, then valued at $1.5 billion, reportedly entering into discussions with the Safra family. But the owner changed tack in April, opting to pursue a loan instead.
The loan will be take advantage of low borrowing rates to retire a previous $350 million mortgage on the property, taken out in 2007, according to the Wall Street Journal. [WSJ] – Ariel Stulberg