NEW YORK CITY-RFR Holding LLC has refinanced its 345 Park Ave. South building here. The locally-based real estate investment firm reports it has closed on $100 million in CMBS financing on the property.

The CMBS transaction, arranged by Citibank, has a 10-year term at a lower interest rate. Published reports indicate the new deal is at a 4% rate as compared with about 5.5% under the old financing arrangement. The company says the refinancing will allow it to defease existing debt while taking advantage of lower interest rates that will reduce costs going forward.

345 Park Avenue South is an office property located in the Midtown South submarket of Manhattan. The office floors are 100% occupied by Digitas, a digital marketing firm owned by international advertising and public relations company Publicis Groupe. The Digitas lease expires in November 2021. The street level retail space is occupied by two bank branches and a restaurant, Manzanilla.

"This transaction exemplifies several trends we're seeing in the financing marketplace," states Jason Brown, head of Acquisitions for RFR. "With strong sponsors like RFR, lenders are now willing to extend the term of the financing beyond the terms of existing leases. There's an understanding that groups with a track record of retaining and attracting tenants are likely to maintain stable performance in the future."