Blackstone Lends $360M on CIM’s Acquisition of 1440 Broadway


CIM Group has sealed its acquisition of 1440 Broadway from New York REIT with a $360 million loan from Blackstone Group, Commercial Observer can first report.

The deal closed yesterday and the floating-rate debt has a five-year term, sources said. The $360 million loan was made at 60 percent loan-to-cost.

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“Speed of execution was critical here. There was a very short fuse to close as it’s something of a transitional asset,” one source told CO. The acquisition financing drew competition from a variety of capital sources—including a mix of U.S. and foreign banks as well as debt funds—with Blackstone winning the deal.

CBRE and Eastdil Secured co-arranged the acquisition financing and also co-marketed the property for sale earlier this year. James Millon and Tom Traynor led the CBRE Capital Markets team in the acquisition financing while Darcy Stacom and Bill Shanahan brokered the sale. Officials at CBRE and Eastdil did not immediately return a request for comment.

In November, The Real Deal reported that Los Angeles-based CIM had entered into contract to buy the Midtown office property, located between West 40th and West 41st Streets, for $520 million.

New York REIT, which has been shedding assets as part of its liquidation plan, announced that it closed on the sale of the building yesterday, and that the $305 million mortgage on the property was “fully satisfied at closing.” After satisfaction of this debt, pro-rations and closing costs, the REIT received net proceeds of approximately $193 million.

In September, CO first reported that RXR Realty and SL Green Realty Corp. would purchase a 49 percent stake in New York REIT’s $1.7 billion One Worldwide Plaza and that Goldman Sachs would lead the $1.2 billion refinance of the property’s debtwhich occurred concurrently with the sale closing.

The REIT also announced yesterday that it has entered into three separate contracts to sell its properties located at 306 East 61st  Street, One Jackson Square and 350 West 42nd Street for an aggregate amount of $103.1 million. The closings are expected to occur in early 2018.

It’s been a busy December for Blackstone. As first reported by the New York Post, Blackstone Group, via its core-plus fund, entered into a contract earlier this month to buy a 49 percent stake in One Liberty Plaza from Brookfield Property Partners, in a transaction valuing the property at $1.55 billion.

Traynor and Millon have been off to the races since they joined CBRE Capital Markets from Deutsche Bank last year. In November, the duo arranged a $800 million loan from Deutsche Bank and HSBC to refinance Fosun International’s 28 Liberty Street in the Financial District, and they also closed a $1.75 billion loan for HNA’s purchase of 245 Park Avenue in May, as well as a $1.1 billion loan for Stonemont Financial Group’s $1.3 billion acquisition of 100 triple net lease properties in August.

Officials at Blackstone could not immediately be reached for comment. A spokesman for CIM did not immediately return a request for comment.