KBS Capital Advisors and Savanna secured a $265 million loan package to refinance the Downtown office building 110 William Street, according to documents filed with the Tel Aviv Stock Exchange.
The package consists of $205 million in senior debt with a floating interest rate of 2.25 percent over Libor and two mezzanine loans of $29.85 million each with rates of 6.25 percent over Libor. The mortgages will come due in March 2019, with options to extend until March 2022.
It wasn’t immediately clear who provided the loans. Representatives for KBS and Savanna did not respond to requests for comment.
The two firms bought the 928,000-square-foot, 31-story building in 2013 from Swig Equities for $261 million. The New York City Economic Development Corporation, which occupies 262,500 square feet in the tower, is reportedly looking for a new home.
California-based KBS’ Strategic Opportunity REIT last year raised $216 million on the Tel Aviv Stock Exchange, becoming the first U.S. real estate investment trust to sell Israeli bonds.