About a month after signing a believed record-breaking New York City commercial lease at the time at 9 West 57th Street, landlord Soloviev Group has closed on a massive $1.8 billion refinancing of the 50-story office tower.
Bank of America led the issuance of the loan that carries an interest rate of 4.97 percent, with some backing from Wells Fargo and Citibank.
Soloviev said that the move underscores the building's Class A appeal that's attracting strong tenant demand and building outperformance. Additionally, the New York-based firm expects the property to hit a market valuation of $3.9 billion.
"This refinancing is a clear validation of the strength of 9 West 57th Street and the collaborative success of lead lender Bank of America, and secondary leads Wells Fargo and Citibank," Stefan Soloviev, chairman of Soloviev, said in a statement.
Part of the appeal is the recent revamp at 9 West 57th that includes modernizing the building system technology and elevators, while improving the lobby. Additionally, the 1.7 million square foot building now features a 20,000 square foot amenity floor that includes a coffee bar, meeting space, dining and a hospitality area.
The quality at 9 West 57th appears to have attracted the largest ever per square foot lease in NYC's commercial marketplace. Specifically, that was in early April when Soloviev reported that a family office signed a 10-year lease at $327.50 per square foot. It looks like Soloviev has revised that number up to $340 per square foot, according to its latest press release. Regardless, the developer still believes that the amount was a record amount for a commercial property in the region.
Additionally, the property has raked in other major names, such as the U.S. Soccer Federation, Hess Group LLC, Beaconlight Capital LLC and Platinum Equity Advisors LLC. All of which signed leases last year, accounting for a combined more than 40,000 square feet of space at the building, with rents all exceeding $200 per square foot.
Some other tenants at 9 West 57th include Apollo Global Management, CHANEL, Loews Corp., Veritas, Standard Industries, Panco Operations and Tikehau Capital.
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