Brookfield Properties has refinanced its 660 Fifth Avenue office tower that sits in the Plaza District submarket for $1.3 billion, according to a presale document from Morningstar.
The deal includes a $1.21 billion mortgage loan, along with a $89.4 million mezzanine loan — both of which require interest-only payments. The proceeds, along with a $118 million letter of credit, are being used to pay off the existing debt, closing costs and outstanding fund obligations.
Eastdil Secured arranged the financing, according to a spokesperson.
The Plaza District's office submarket in the first quarter averaged vacancy and availability rates of 11.1 percent and 16 percent, respectively in the first quarter, according to Morningstar. Those are down modestly from the fourth quarter's 11.4 percent and 16.3 percent rates, respectively. Also, the Plaza's availability is at the lowest level seen since 2018.
Brookfield acquired the 39-story property in 2018 from Kushner Co. and recently completed a $400 million renovation project at the site. The building that offers 1.25 million square feet of commercial space now features floor-to-ceiling windows, a modernized lobby and elevators, multiple exterior terraces and energy efficiency upgrades that reduce carbon emissions by 54 percent, according to KPF, the architect that renovated 660 Fifth. Since buying the asset, Brookfield has invested a total of $611.3 million into it.
In Brooklyn and Manhattan, Brookfield operates 29 office properties. Additionally, The Real Deal reported that Brookfield in June was nearing a $400 million deal to acquire a 49 percent stake in a Midtown South office tower, 63 Madison Avenue, which spans 866,400 square feet.
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