Brookfield Properties is closing in on a $1.3 billion refinance of 660 Fifth Avenue, a dramatic turnaround for the recently redeveloped office tower.
Citi Real Estate, Barclays, ING Capital, Bank of America and Santander Bank will originate a $1.2 billion CMBS loan, according to a Morningstar presale report. The lenders will also provide an $89.4 million mezzanine loan, per the report, which appraises the 1.3 million-square-foot, 39-story trophy tower at nearly $2 billion. Eastdil arranged the debt, per CMA, which first reported the news.
The interest-only CMBS loan has a two-year term with three one-year extension options. Proceeds will go toward repaying previous debt, including a $750 million loan from ING Group and a $300 million mezzanine loan from Apollo Global Management.
The blockbuster refi comes after Brookfield spent $400 million rededeveloping and modernizing the 1950s building, formerly known as 666 Fifth Avenue, putting on a new facade clad with glass panels, along with an upgraded lobby, amenity space, elevators and improved infrastructure to significantly reduce the carbon footprint.
The building, two blocks north of Rockefeller Center, hit full occupancy in September, when Scotiabank inked a 205,000-square-foot lease, a major milestone for a property mired in controversy less than a decade ago.
Brookfield purchased the 99-year ground lease from Kushner Companies in a $1.3 billion deal, raising questions about whether Jared Kushner leveraged foreign policy connections to secure a bailout of the property (the Qatari government holds investments with Brookfield).
In May 2022, Australian financial services company Macquarie Group became the first tenant to sign on at the revamped property, taking 250,000 square feet. Other tenants jumped on board soon after, including 400 Capital, Stephens and Viking.
Late last year, Citadel agreed to take 504,000 square feet at 660 Fifth, the second-largest lease of the second quarter in Manhattan. Citadel is expected to move into the tower in January, making it the building’s largest tenant.
Brookfield did not respond to requests for comment.
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