Rudin borrows $425M to refinance 32 Sixth Avenue

The CMBS-backed loan was underwritten by JPMorgan Chase and Deutsche Bank

From left: Bill Rudin and 32 Sixth Avenue in Tribeca
From left: Bill Rudin and 32 Sixth Avenue in Tribeca

Rudin Management is taking advantage of low interest rates while they last, signing a $425 million loan to refinance its 32 Sixth Avenue office tower.

The 10-year loan, which will be sold off as commercial mortgage-backed securities, was underwritten by JPMorgan Chase and Deutsche Bank.

Rudin incurred a $26.2 million termination fee for early payment of its previous $360 million loan, which was also securitized, according to Trepp. That loan was set to expire in April 2017.

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Bill Rudin, the firm’s CEO, defended the decision, saying the fee was worth locking in low rates.

“We liked where the interest-rate market is today and thought this was an opportune time to refinance on a long-term basis,” Rudin told Crain’s. “In two years from now, we think rates will be significantly higher than where they are now.”

Rudin bought the landmarked, 1.1-million-square-foot Tribeca office building, also known as the AT&T Long Distance Building, in 1999. Telecom and communications companies including Qwest Communications, Telx, Tata Communication, Dentsu Aegis and the Cambridge University Press make their home at 32 Sixth Avenue. [Crain’s]Ariel Stulberg