Trio of Life Companies Ups Debt on LIC Office Tower to $305M [Updated]
By Danielle Balbi February 9, 2017 12:05 pm
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Canadian H&R Real Estate Investment Trust snagged a hefty financing package for 2 Gotham Center, a 22-story office tower in Long Island City, Queens.
Northwestern Mutual Life Insurance Company, Great-West Life Assurance Company and Canada Life Financial Corporation put together a total of $305 million in debt for the REIT, according to records filed with the city.
The life companies filed an amendment the $250 million mortgage that was used toward H&R’s $416.2 million acquisition of the building from Tishman Speyer in October 2011, and provided a second mortgage of $55 million.
The 669,554-square-foot office tower, which sits in front of the aboveground 7 train at 42-01 28th Street, was constructed in 2009 and is fully leased to the New York City Department of Health and Mental Hygiene.
The office tower is not H&R’s only investment in the immediate area: The REIT is partnering with Tishman Speyer in a 1.2-million-square-foot development across the street. Once completed, the project will include 1,789 rental units in three buildings, and the total cost (including land acquisition) is roughly $875 million. The partnership received a $640 million loan from Bank of America Merrill Lynch and Wells Fargo to finance construction in December 2015, as Commercial Observer reported.
Representatives for Northwestern Mutual, Great-West and Canada Life did not respond to requests for comment, while a spokesperson for H&R was unavailable to comment.
Update: This story has been updated to reflect the total amount of indebtedness on 2 Gotham Center.
