Fisher Brothers Finagle $500M Refi of 299 Park Avenue

There’s still interest in office refinancings in Manhattan, the latest evidence coming courtesy of Fisher Brothers in Midtown.

The firm landed $500 million to refinance the 42-story, 1.2-million-square-foot tower at 299 Park Avenue, the developer announced on Tuesday. Citi Group and JPMorgan provided the debt at the office property, which is 95 percent leased. The landlord also recently spent $20 million on a capital improvement project.

A Newmark team including Jordan Roeschlaub, Jonathan Firestone and Nick Scribian brokered the transaction. The 10-year loan is more than $100 million greater than the property’s previous mortgage, according to Crain’s, which reported the refinancing before it closed.

The well-leased property is in good shape in terms of occupancy, likely increasing its attractiveness to investors. Capital One and UBS combine to take up 30 percent of the rentable square footage, according to Fitch Ratings, and are in place through 2031. Lease expirations are minimal for the next few years.

The landlord signed more than 60,000 square feet worth of leases last year, though that includes new leases, renewals and conversions from subtenancy to direct deals.

Fourth-generation firm Fisher Brothers has been the beneficiary of the office market’s flight to quality. About a year ago, the company scored two major leases at 1345 Sixth Avenue, inking Intercontinental Exchange to 143,000 square feet and law firm Paul, Weiss, Rifkind, Wharton & Garrison to a 20-year lease for 765,000 square feet.