Billionaire landlord Sheldon Solow has locked up a $625 million loan from Deutsche Bank AG to help refinance a securities-backed debt tied to 9 West 57th Street that was slated to mature in February, sources confirmed.
The loan, which was first reported by Bloomberg.com last week, will be used as “ongoing capital” for 9 West 57th, a person familiar with the matter told The Commercial Observer.
“The building doesn’t need capital improvement, it’s rock solid,” said the person. “It needs ongoing capital, that’s all,” the person added.
Deustche Bank AG reportedly edged out American International Group Inc. and JPMorgan Chase & Co. to provide the financing for 9 West 57th Street. The loan may be bundled as bonds and sold to investors, according to Bloomberg.com.
The loan was finalized last week, a person close to the matter said.
The 50-story 9 West 57th Street commands one of the highest rents in the city – as much as $200 per square feet in some instances – and is famed for its Central Park views and tenant list of prominent boutique investment firms like Kohlberg Kravis Roberts & Co.
Wealth Management firm Forty North signed a 10-year lease to take 17,000 square feet at the Solow skyscraper in August.
The building, which also counts Silver Lake Partners and Chanel SA as tenants, has seen its occupancy rate drop to 38 percent from its near-50 percent rate at the beginning of the year, sources said.
Daniel Edward Rosen, Staff Writer, is reachable at DRosen@Observer.com.