Joint venture owners of 430 Park Avenue have secured a $72 million loan to refinance the leasehold interest in the building and use the funds to reposition the asset. The JV, which has owned the building since the 1954 construction, consists of Midwood Investment & Development Inc., Marx Realty and Oestreicher Properties.
Axonic Capital LLC provided the floating-rate debt, which replaces the existing senior debt. Ackman Ziff arranged the deal on behalf of the JV.
The proceeds will be used to renovate 430 Park Avenue, which includes upgrading the lobby, plus funding tenant rollover costs.
Currently, the Class A property in Midtown hosts 295,900 square feet of space, which is 99 percent leased. The tenant roster spans across sectors, including legal, real estate and financial services.
According to Axonic, the Park Avenue corridor remains "one of the strongest" office submarkets in the nation.
"As the demand for premier Manhattan office space accelerates, we continue to see opportunities to lend against high-quality office assets where long-term value is bolstered by strong tenancy, experienced sponsorship and attractive market dynamics," Erik Nygaard, principal and portfolio manager at Axonic, said in a statement.
"430 Park Avenue checks every one of those boxes, exemplifying the type of financing situation Axonic finds most compelling – where the credit story is anchored by strong fundamentals and durable in-place cash flow, and we can structure financing that gives ownership the flexibility to continue creating value."
Overall, office in Manhattan remains strong. Activity in the sector was steady at nine million square feet in the first quarter, just 100,000 square feet below the total posted in the same period a year ago, according to a report from JLL. Also, vacancy dropped by 220 basis points to 13.5 percent.
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