Owners of 295 Fifth Ave Push for Revival With Refinancing

A landlord trio secured more than $200 million in fresh debt following the renovation of their 19-story Midtown South office building.

PGIM, Tribeca Investment Group and Meadow Partners landed a $228.9 million loan to refinance 295 Fifth Avenue, otherwise known as the Textile Building, the Commercial Observer reported. Rialto Capital Management and Hines issued the floating-rate, interest-only bridge debt.

The sponsorship group last secured $150 million in debt from Deutsche Pfandbriefbank in November 2022. That followed the start of a $350 million capital improvements project, featuring the addition of a ground-floor courtyard, several terraces, hospitality amenities and a two-story penthouse.

There were reportedly several bidders to provide the debt to the sponsorship group this time around. A Walker & Dunlop team including Dustin Stolly, Aaron Appel and Jonathan Schwartz arranged the debt.

The building is only 50 percent leased, but supposedly on the path to stabilization, a source told the Observer.

The world’s largest hedge fund firm, Bridgewater Associates, leased 60,000 square feet in September 2024 for its first Manhattan office. Law firm Quinn Emanuel Urquhart & Sullivan, meanwhile, relocated to 132,000 square feet at the building in 2023; at the time, asking rents ranged from $95 per square foot at the bottom to $135 per square foot at the top.

Manhattan Properties Company sold the 99-year leasehold on the building for $375 million in 2019. The building fronts the full block along Fifth Avenue between East 30th and East 31st streets

Midtown South is an occasional beacon for office leasing in Manhattan. In April, the submarket snapped up four of the borough’s five largest office leases, according to a Colliers report, accounting for nearly 45 percent of all leasing demand that month.

Leasing activity in Manhattan remains robust, seeing 11 million square feet taken in the second quarter and a first-half total of 22.8 million square feet, positioning it to be potentially the busiest leasing year since 2000.

— Holden Walter-Warner