Empire State Realty Nabs $160M Prudential Refi for Broadway Office Properties


Empire State Realty Trust has scored $160 million from PGIM Real Estate Finance to refinance two Herald Square mixed-use office properties at 1333 and 1400 Broadway, according to records filed yesterday with the New York City Department of Finance.

The debt replaces and consolidates roughly $142 million in previous debt on both 1333 and 1400 Broadway. The consolidation included roughly $66.5 million in previous PGIM (a real estate investment arm of Prudential (PRU)) debt from December 2007 with approximately $75.7 million in additional, consolidated and previous debt to form the $142 million senior portion. Prudential capped off the financing package with approximately $17.8 million in new financing in the form of a gap mortgage. The deal closed on Jan. 8.

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Representatives of Empire State Realty Trust (ESRT) did not immediately return a request for comment on the financing.

1400 broadway credit propshark 01172018 2 Empire State Realty Nabs $160M Prudential Refi for Broadway Office Properties
1400 Broadway

ESRT acquired its leasehold at 1400 Broadway for $310 million, or approximately $346 per square foot, in July 2014, according to a report from Business Wire. The acquisition consisted of the assumption of $80 million in existing debt, $79.7 million in cash and just over $150 million in shares of common stock and Series PR operating partnership units—or a series of nonvoting securities.

Built in 1915, the 12-story, mixed-use office building at 1333 Broadway—also called the Johnson Building—consists of 359,630 square feet of rentable space, according to information from ESRT’s website, and it currently houses Global Brands Group and New York Outdoor as office tenants as well as Urban Outfitters, Rituals, Dr. Martens and Shake Shack in its retail space.

The 37-story office tower at 1400 Broadway was built in 1930 and has 927,683 square feet of rentable space, according to ESRT’s website. The building currently hosts the executive offices of both Burlington Coat Factory and Kohl’s and houses the Interpublic Group of Companies, OnDeck Capital, Mott MacDonald and law firm Fragomen. The firm’s retail tenants at the property include Maison Kayser, Chipotle and Subway.

PGIM Real Estate Finance declined to comment on the transaction.