SL Green and Jeff Sutton’s Wharton Properties pulled off a $235 million loan to refinance 724 Fifth Avenue, a 12-story building in the heart of The Plaza District that is home to Prada’s flagship in New York.
Aareal Capital Corporation provided the loan, which replaces a $235 million loan from Goldman Sachs in 2014, loan documents show.
Located between 56th and 57th streets, 724 Fifth is owned by a partnership between SL Green [TRDataCustom] and Wharton, who paid $200 million for the 65,000-square-foot building in 2012.
The landlords pocketed $150 million in proceeds from the 2014 Goldman financing, which replaced a $120 million loan held by Wells Fargo. In 2013, SL Green and Sutton renewed Prada’s lease for 20,000 square feet of retail space at 724 Fifth through 2028, for about $19 million a year, sources told The Real Deal in early 2016.
Aareal, a subsidiary of Germany-based Aareal Bank, recently provided a $575 million acquisition loan to Singaporean sovereign wealth fund GIC, which bought a 95 percent stake in 60 Wall Street from Paramount Group and Morgan Stanley. The deal values the Deutsche Bank headquarters at $1.1 billion.
Earlier this week, SL Green said the National Pension Service of Korea took a 27.6 percent stake in office tower One Vanderbilt and Hines took another 1.4 percent, which will inject $525 million in equity into the project. The Marc Holliday-led REIT expects One Vanderbilt to generate $198 million in net operating income once the 1.7 million-square-foot tower is built and fully leased. The tower is expected to cost more than $3.2 billion.