Office Buildings Tops Manhattan’s August Loans

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Manhattan’s debt markets didn’t slow down in August as some of the city’s biggest landlords lined up billions in fresh financing.

Three blockbuster office refinancings topped the month’s largest loans, led by the Durst Organization’s $1.3 billion deal for its Times Square tower. Paramount Group landed a $900 million loan for its Sixth Avenue tower just before the office landlord was sold to the highest bidder. On the residential side, lenders doled out dollars to Miki Naftali and Josh Gotlib and Meyer Orbach’s recently-launched REIT.

Together, the deals totaled more than $4 billion and underscored lenders’ appetite for prime Manhattan real estate. Here are the top five loans in Manhattan.

Durst debt | $1.3B | Midtown

Wells Fargo, JPMorgan Chase and Bank of America originated a $1.3 billion CMBS loan for the Durst Organization’s One Five One office tower in Times Square. The loan, carrying a 6.1 percent interest rate, will pay off roughly $1.1 billion in existing debt on the 1.8 million-square-foot tower at 151 West 42nd Street. It will fund nearly $40 million in reserves and closing costs, according to an S&P Global report.

The deal includes a $719 million “A” note that earned a preliminary AAA rating from S&P on the back of Durst’s financial strength and the tower’s performance. Remaining capital will go toward tenant improvements, leasing costs and a $146 million equity payout to the landlord. The fresh financing replaced a $900 million refinancing from JPMorgan Chase and Wells Fargo from 2019. The tower, formerly known as 4 Times Square, is 92 percent leased. TikTok is the anchor tenant and occupies 232,000 square feet.

Paramount payday | $900M | Midtown

Morgan Stanley and Wells Fargo provided a $900 million loan for Paramount Group’s 45-story office tower at 1301 Sixth Avenue. The loan replaced a $710 million loan from Morgan Stanley that was set to mature in 2026. The refi came after law firm Piper Sandler signed a 140,000-square-foot lease and law firm Adler & Stachenfeld took 40,000 square feet, bringing the building to 97 percent occupancy. The building will soon be owned by New York City-based Rithm Capital, which won a bidding war for Paramount after shareholders raised concerns over the real estate investment trust’s performance and management.

Apollo landing | $785M | Midtown

Apollo Global Management provided a $785 million loan to finance RXR’s $1.08 billion purchase of 590 Madison Avenue. RXR bought the Plaza District office tower for $1.08 billion from the State Teachers Retirement System of Ohio. Scott Rechler’s firm partnered with Elliott Investment Management and Baupost Group on the deal. The final debt package is broken down into a $650 million senior loan, a $135 million mezzanine loan and about $60 million in future funding commitments for things like tenant improvements and leasing costs. Eastdil Secured’s Grant Frankel arranged the debt.

Naftali knockdown | $675M | Upper East Side

JPMorgan Chase provided a $675 million loan for Miki Naftali’s purchase of the 33-story 800 Fifth Avenue rental building from Eliot Spitzer and the Winter Organization. Naftali agreed to buy the 208-unit building last March for more than $800 million, which works out to about $2,400 per square foot. He plans to tear down the existing building and replace it with a new tower. Newmark’s Jordan Roeschlaub and Nick Scribani arranged the debt.

Copper cash | $525M | Murray Hill

Arbor Realty Trust provided a $525 million loan for the Copper Apartments, a pair of luxury apartment towers owned by Josh Gotlib and Meyer Orbach’s GO Residential REIT. The fresh financing for the 761-unit property at 616-626 First Avenue in Murray Hill replaced a $611.5 million CMBS loan. Gotlib and Orbach bought the buildings in 2022 for $837 million. They launched their real estate investment trust this summer, listing it on the Toronto Stock Exchange with a $2.7 billion multifamily portfolio of more than 2,000 units.