NEW YORK CITY—Hudson's Bay Company has announced plans for a$1.25 billion, 20-year, interest only mortgage on the groundportion of its Saks Fifth Avenue flagship store at 611 5th Ave. Thetransaction is expected to close in early December.
An independent appraiser valued the entire property at $3.7billion based on the assumption that the entire property is netleased by Saks Fifth Avenue at an estimated current fair marketrent.Morgan Stanley Bank, Goldman Sachs Mortgage Co. and the Bankof Nova Scotia, independently commissioned a leading internationalappraiser to provide appraisals of the land and thebuilding.
In a conference call regarding the mortgage, governor and CEORichard Baker said, “As we worked to advance and realize value fromour real estate portfolio, it became obvious to us that thisproperty is unique and should be treated differently than our otherproperties.”
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Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
