RFR Secures $100M Refi on 160 Fifth

NEW YORK CITY-RFR Holding LLC on Monday said it had closed on $100 million in financing for 160 Fifth Ave., a boutique office property it acquired in 2005 and successfully repositioned. RFR says the refinancing through Citibank will enable it to retire $65 million of existing debt on the 107,000-square-foot Midtown South property, while taking advantage of lower interest rates.

“We continue to pursue our portfolio-wide strategy to limit rate exposure through refinancing,” says Mark Weiss, CIO at RFR. In the case of 160 Fifth, he adds, “RFR has 100% leased the property and completed a major renovation and restoration program that substantially enhanced the value of the asset.  By refinancing we not only take advantage of current interest rates, but also recover equity capital for new opportunities.”

The company paid just north of $70 million to acquire the circa-1892 building eight years ago, and completed a gut rehab between 2007 and 2009. Its largest tenant at 160 Fifth is the Simons Foundation, a private charitable foundation formed by hedge fund manager James H. Simons, at 76,000 square feet.  Also on the tenant roster are office and showroom space for Grohe America, the luxury faucet designer; Forrester Research; and Prophet Brand Strategy. Fashion retailer Club Monaco occupies the retail component of 160 Fifth.

In January 2011, RFR lined up a $65-million, five-year refi from Westdeutsche ImmobilienBank and M&T Bank on 160 Fifth. At that time, the repositioned nine-story property was 89% leased; RFR brought it to full occupancy the following November when the Simons Foundation expanded to its present footprint.