Brookfield Properties refinanced a retail condo at one of the crown jewels of Midtown Manhattan.
London-based Cale Street Partners provided $601 million to refinance the retail condo at 730 Fifth Avenue, the Commercial Observer reported. The debt package, first reported by PincusCo, includes a $462.3 million loan, matching what Apollo Global Management provided three years ago; presumably, the remainder is mezzanine debt.
The value of the debt backing the retail condo has jumped around over the last decade. Brookfield scored a $720 million loan in 2018 and a $587.3 million loan the following year before receiving Apollo’s $601 million loan in 2022.
Jeff Sutton and mall company GGP bought the property, known as the Crown Building, in 2015 for $1.75 billion. Three years later, Brookfield acquired GGP, and in 2020, Sutton sold to Brookfield the majority of his stake in the retail portion of the property.
“The Crown Building remains one of the top retail locations in the world, and we are very pleased with the completion of the refinanced loan,” said Brookfield Real Estate managing partner Kevin McCrain.
Luxury retailers such as Bulgari, Ermenegildo Zegna, Mikimoto, Chopard and Chanel occupy the space on the ground floor of the 25-story property at the corner of Fifth Avenue and 57th Street. Prada purchased a retail condo at the address for $12.6 million last year, though property records reflect the leasing of an annex for the same price.
The upper floors of the building are home to the Aman New York hotel and branded residences.
At the start of the year, Vlad Doronin traded the final unit at the luxury hotel-condo conversion for more than $11,400 per square foot. The $66 million sale was a decent discount from the $79 million asking price specified on the developer’s offering plan.
Still, the deal achieved a sellout for the historic tower, where sales launched in 2018 with a team from Doronin’s OKO Group at the helm. Deals at the Billionaires’ Row development have frequently made headlines, such as when Doronin himself paid $135 million for the crown jewel penthouse.
Doronin purchased the office portion of the building for $475 million in 2015 in a partnership with developer Michael Shvo, though Doronin cut him out of the project two years later; Shvo maintains a small stake in the development.
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