Northwood scores $237M loan to buy HNA’s 1180 Sixth
Royal Bank of Canada financed the deal for Midtown office building
To close its purchase of 1180 Sixth Avenue, Northwood Investors obtained a $236.6 million loan from the Royal Bank of Canada, sources told The Real Deal.
Northwood, a real estate investment firm led by John Kukral, closed Thursday on the $305 million purchase of an HNA Group subsidiary and MHP Real Estate Services’ 22-story Midtown office property, as TRD first reported.
The financing is a floating-rate loan and represents roughly 78 percent of the purchase price, sources said. An undisclosed portion of the loan is being set aside for future funding, potentially for a redevelopment of the property down the road. Sources said Northwood doesn’t have immediate plans for a redevelopment.
The property is anchored by Scripps Networks Interactive, which has a lease for 126,000 through mid-2021. Scripps meanwhile has been searching for a new headquarters in the city.
Newmark Knight Frank’s Jordan Roeschlaub and Dustin Stolly, who brokered the financing, declined to comment.