Durst Organization + Bank of America (BoA) have secured a $1.6 billion refinancing for One Bryant Park in a deal led by BoA. The financing will combine a $950 million CMBS loan from BoA + JP Morgan with $650 million in previous public-assisted financing.
- Dig Deeper: BoA’s portion of the financing will replace and expand the prior CMBS mortgage, and the public-assisted financing will retire construction bonds secured via the Liberty Bonds program in 2009. The additional $300 million will allow Durst + BoA to cash out a portion of their equity.
- Be Smart: The ten-year interest-only CMBS loan carries a 3.25 percent fixed interest rate. A recent appraisal valued the office tower at $3.5 billion, implying a relatively modest loan-to-value ratio of 45.7 percent.
- Worth Noting: The underlying land belongs to Empire State Development, which ground-leased the tower to the two sponsors in a 99-year deal that dates to 2004. Last year, the sponsors took in $132.7 million in NOI.
- Tenants include… Bank of America, Marathon Asset Management, the Roundabout Theatre Company, and the law firm Akin Gump. (CO)