Anbang Insurance Group, the Beijing-based insurance company that bought the Waldorf Astoria for $1.95 billion, closed on its purchase of 717 Fifth Avenue’s office space with a $260 million acquisition loan from Bank of China, Commercial Observer has learned.
Anbang acquired the 26-story tower—minus its luxury retail portion—from Blackstone Group for about $415 million, giving the debt deal a loan-to-cost ratio of just over 60 percent, a person with knowledge of the deal confirmed.
The financing from Bank of China carries a term of three years with a two-year extension option, said the person, who requested anonymity.
Crain’s New York Business first reported the news of the sale earlier this year. A team from CBRE represented Blackstone in the transaction.
The more than 350,000-square-foot office tower in Midtown’s Plaza District was built in 1958. A partnership between Jeff Sutton’s Wharton Properties and SL Green Realty Corp. owns the building’s 110,000 square feet of retail space.
Anbang finalized its acquisition of the iconic Waldorf Astoria hotel from Hilton Worldwide in February. The Chinese insurer is planning an initial public offering that could raise about $2 billion, Bloomberg Business reported last November.
Representatives for Anbang Insurance Group could not be reached for comment. A representative for Bank of China declined to comment.