X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NEW YORK CITY-Cushman & Wakefield Sonnenblick Goldman has obtained a $145-million leasehold mortgage on behalf of S.L. Green Realty Corp. for the refinancing of S.L. Green’s headquarters building at 420 Lexington Ave. The refi on 420 Lexington, also known as the Graybar Building, was provided by TIAA-CREF.

“The financing was accomplished during one of the most turbulent times in the credit market history and in a severe economic downturn,” says Morton Holliday, managing director of C&WSG, in a release. “It is heartening to note that even in these distressed times financing is still available for the deals that have the right mix of quality sponsor, quality building, quality location, and conservative underwriting. The Graybar Building financing met all of these criteria.”

According to S.L. Green’s July 28 8-k filing, the current financing on 420 Lexington carries an 8.44% coupon, with an outstanding principal of $108.6 million as of June 30. It is due to mature in November 2010. A news release from the REIT says the TIAA financing, provided at a 7.5% fixed rate, matures in 2016 and features two, one-year extension options.

S.L. Green CEO Marc Holliday says in the release that the deal reflects “the strong relationship” that his company has built up over the years with TIAA, “both as a lender and as an investment partner. We’re pleased to have that continue.” He adds, “It also follows immediately on the heels of our 625 Madison Ave. refinancing announced just last week. With these two transactions, featuring attractive rates of 7.5% and 7.22% respectively, we have addressed near-term maturities and generated more than $65 million of net cash proceeds, which will be utilized to further manage our near-term debt obligations.”

S.L. Green acquired the historic 1.5-million-square-foot, 31-story office and retail building, located near Grand Central Terminal, for $27.3 million in 1999. The REIT has since completed an $84-million capital improvement program on the property, including a lobby upgrade, façade repair, new storefronts and significant leasing related tenant improvements. It is currently 97% leased.

Along with Morton Holliday, the C&WSG team included Alex Hernandez, Kate Pelet and Kathryn Schledwitz. In 2005, Morton Holliday and his colleagues at what was then Sonnenblick Goldman arranged a $175-million recapitalization of S.L. Green’s 100 Park Ave.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.