RXR, SL Green Wrap $1.2B Worldwide Plaza Debt Refi, CMBS Deal in the Works

The loan will be securitized in the WPT 2017-WWP CMBS transaction


RXR Realty and SL Green Realty Corp. have wrapped Worldwide Plaza’s $1.2 billion debt refi in tandem with their acquisition of a 49 percent stake in the trophy asset from New York REIT

SEE ALSO: Hines Taps CMBS Market for $755M Refi in San Francisco

Commercial Observer first reported that Goldman would lead the $1.2 billion refinance of Worldwide Plaza’s debt, with Deutsche Bank also in the mix. CO also first reported that the loan would be securitized in the single asset, Worldwide Plaza Trust 2017-WWP CMBS transaction.

According to a presale report from Morningstar Credit Ratings, The WPT 2017-WPT trust includes $705 million of a $940 million first-lien, whole mortgage loan. In addition to the first-lien mortgage there is $260 million of subordinate mezzanine debt backed by equity interest, held outside of the trust.

The 10-year trust loan was co-originated by Goldman Sachs and Deutsche Bank, with a fixed interest rate of 3.6 percent.

The $940 million in new debt replaces and consolidates an existing $710 million Deutsche Bank loan on the property with a new $230 million mortgage.

New York REIT received $355 million in cash from the sale, according to an announcement from the REIT. Excess proceeds from the refinancing include $109 million of defeasance and prepayment costs, and a $90.7 million capital reserve.  

Worldwide Plaza is a mixed-use property at 825 Eighth Avenue between West 49th and West 50th Streets. As first reported by CO in September, RXR and SL Green agreed to buy a 48.7 percent stake in the trophy asset, with an agreed-upon property value of $1.73 billion. New York REIT is maintaining its 50.1 percent equity interest in the building, with George Comfort and Sons continuing to own the remaining 1.2 percent.

Currently, 100 percent leased, Worldwide Plaza’s office space serves as the North American headquarters for Nomura Holdings and Cravath Swaine and Moore. Its other tenants include WebMD, Rubenstein and CBS Broadcasting.
Spokesmen for Goldman Sachs and New York REIT declined to comment. Officials at SL Green and RXR could not immediately be reached.