1 WTC set for $700M refinancing
State agency OKs bonds to redeem securities from 2011
The New York Liberty Development Corporation is reportedly set to issue bonds this month to refinance the debt on One World Trade Center.
The state agency approved $700 million in bonds on behalf of the Port Authority of New York and New Jersey, which co-owns the building with the Durst Organization, Bloomberg reported.
Proceeds from the offering will redeem securities from a decade ago that were used to finance the building, according to Bloomberg. The deal is being managed by Siebert Williams Shank & Company and the Goldman Sachs Group.
Silverstein Properties also received approval to have Goldman Sachs manage a $525 million refinancing at 7 WTC at an undisclosed time, Bloomberg reported. The building was last refinanced in 2012.
Advertising company Constellation Agency recently signed a lease for 48,000 square feet at 1 WTC, taking up the entire 21st floor. The company is subleasing from Advance, the parent company of Conde Nast, which is looking to sublease about 400,000 square feet in the building.
At the time of the deal, a Durst spokesperson said the building is 90 percent leased. That’s down from a pre-pandemic peak of 93 percent.
The Manhattan office market is slowly beginning to look more like its former self. Office tenants signed more than 3 million square feet worth of leases in November, the first time the market has crossed that threshold since January 2020, according to Colliers’ monthly market snapshot.
Leasing volume increased 14.8 percent from October as the year-to-date leasing total reached 22.13 million square feet. That represents a 27.4 percent increase from the same period in 2020. There’s still a long way to go to reach pre-pandemic levels, however, as the leasing total is still 41.1 percent below the 2019 mark.
[Bloomberg] — Holden Walter-Warner