Fosun Seeks $800M Floating-Rate Refi for 28 Liberty Street

Fosun International is seeking $800 million in floating rate financing for the fee simple interest it owns at 28 Liberty Street, a source with knowledge of the request told Commercial Observer.

The sponsor is looking for a five- to seven-year term on a loan with 55 percent loan-to-value, according to an offering memorandum provided by the source.

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Fosun has retained Tom Traynor and James Millon from CBRE (CBRE) to broker the transaction.

The asset, located in the Financial District of Manhattan between William and Nassau Streets, is a 60-story, 2.2-million-square-foot office property, formerly known as One Chase Manhattan Plaza.

Fosun acquired the building from J.P. Morgan for $725 million in an all-cash deal in December 2013, according to the memorandum. The Shanghai-based conglomerate currently holds $36 billion in real estate assets around the world.

It is currently 72 percent leased and there has been a buzz of leasing activity lately. Coworking company Serendipity Labs sealed a deal for 34,000 square feet at the property on June 30, as first reported by CO. Less than two weeks later, financial trading software company Broadway Technology inked a deal for 25,000 square feet on the 50th floor of the 60-story building, beginning in the fall of 2017. Other new tenants include New York State Attorney General’s Office and a new statement restaurant concept from the Union Square Hospitality Group, the memorandum reads.

The sponsor will retain a significant chunk of equity in the deal, the memorandum says, and the financing would leave a lender with a basis of $347 per square foot, which it claims is equivalent to the value of the land.

A CMBS bond investor who asked not to be named said that securitizing the loan would likely result in “the best execution,” for a deal of this size.

Traynor and Millon have been making waves in the market since they joined CBRE 10 months ago. “We’ve been able to sign up roughly $4 billion in mandates—deals that have just closed or are about to close,” Millon told CO earlier this month.