ABS Real Estate Group Gets $85M Loan for 162 Fifth Ave.

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NEW YORK CITY—The office building at 162 Fifth Ave., between E. 21st and E. 22nd streets was refinanced with $85 million from Mass Mutual Life Insurance. Real Capital Analytics lists the owner of the building as ABS Partners RE LLC. ABS Altman Warwick tells GlobeSt.com that the building is owned by a group of investors who are long-term clients of ABS Partners Real Estate.

ABS Partners Real Estate is a New York-based real estate firm, for which ABS Altman Warwick serves as the capital markets advisory entity. ABS Altman Warwick arranged for a 30-year, fixed-rate loan of just over 4%, tapping into a long-term lender relationship.

The building is currently 100% occupied. A retail branch of JP Morgan Chase leases the street-level space. The Simons Foundation has an approximately 30-year lease for most of the building. It fully occupies the second through the 12th floors. The foundation is a philanthropic organization founded by mathematician, hedge fund manager and philanthropist James Simons and his wife Marilyn. It supports research in mathematics, astrophysics, bio-sciences and the treatment and diagnosis of autism.

Simons started the hedge fund Renaissance Technologies and amassed a net worth of about $16 billion according to the Bloomberg Billionaire Index.

“By capitalizing on an exceptionally flat yield curve, we were able to provide the borrower with the benefit of a 30-year, fixed-rate loan for essentially the same price of a 10-year loan,” says Brian Warwick, co-managing partner at ABS Altman Warwick. “By having the loan maturity match both the Simons’ lease term and the borrowers’ long-term hold strategy, we were able to eliminate future interest rate risk and protect the property’s in-place cash flow, resulting in the optimal financing structure for the borrowers.”

One of the largest private funders of basic science in the US, the Simons Foundation is headquartered at 160 Fifth Ave. Its Flatiron Institute is at the 162 Fifth Ave. location. The organization provides grants and advances scientific research through the development of computational methods and tools. The institute comprises the Center for Computational Biology, the Center for Computational Astrophysics, the Center for Computational Quantum Physics and the Center for Computational Mathematics.

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