Tishman Speyer scored a $385 million refinancing deal for its office building at 300 Park Avenue.
JPMorgan Chase, Deutsche Bank and Morgan Stanley originated a $330 million CMBS loan backed by the 25-story Midtown tower, according to a press release from the landlord. Macquarie Capital Principal Finance provided an additional $55 million in mezzanine debt.
Tishman chipped in $111 million in fresh equity, according to Commercial Real Estate Direct, which first reported the loan. That, along with the proceeds from the refinancing, will be used to pay off $485 million in outstanding principal from a CMBS loan issued in 2013. That 10-year loan went into special servicing two years ago because of “imminent balloon/maturity default,” Trepp reported at the time.
Tishman Speyer said it requested the loan go to special servicing to work out an extension prior to its 2023 maturity. The landlord scored the extension, adding one year to the maturity date with an option to extend it to August 2025.
Since 1980, 300 Park Avenue has been the global headquarters for Colgate-Palmolive, which once occupied around 503,600 square feet, or about 65 percent, of the property. The consumer goods company renewed about 242,000 square feet in 2019, extending its occupancy until 2033 but reducing its footprint, according to Crain’s.
As Colgate-Palmolive downsized, occupancy at the 770,000-square-foot building fell from 99 percent in 2018 to 75 percent in 2020. But tenants have inked 440,000 square feet of new leases, extensions and expansions since 2021, according to the landlord. The tower is now fully occupied.
Other large tenants include Ally Financial and Golden Tree Asset Management. Tishman also operates 72,000 sf of coworking space that was 97 percent leased in April, according to Trepp.
The building at 300 Park is a five-minute walk from Grand Central Terminal. It was designed by Emery Roth & Sons and constructed in 1955. Tishman has owned the property since 1999 and invested about $47 million in upgrades.
Midtown is leading the charge in Manhattan’s office recovery. The neighborhood’s availability rate has decreased for five consecutive quarters, falling to 14 percent in June, according to Colliers.
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