Natixis, Paramount Lend $342M to Refi HNA Group’s 850 Third Avenue
Natixis provided a $242 million senior loan, while Paramount and Harbor Group International lent $75 million and $25 in mezzanine debt, respectively
Natixis, with real estate investment trust Paramount Group and Norfolk, Va.-based Harbor Group International, provided a joint venture headlined by Chinese conglomerate HNA Group with $342 million to refinance 850 Third Avenue in Midtown, one of a handful of U.S. skyscrapers the entity has been looking to offload following a massive government imposed investment freeze sanctioned earlier this year.
Natixis provided a $242 million senior loan, while Paramount and Harbor split a $100 million mezzanine piece, with Paramount lending $75 million and Harbor $25 million, sources with knowledge of the transaction told Commercial Observer.
Natixis Managing Director Michael Magner and Paramount Senior Vice President David Zobel originated their respective pieces of the capital stack, sources said. It wasn’t immediately clear who led Harbor’s mezz investment.
HNA and partners MHP Real Estate Services and ATCO Properties & Management secured the short-term, floating-rate financing in a deal that was co-brokered by Cooper-Horowitz’s Richard Horowitz and David Horowitz and Newmark Knight Frank’s Dustin Stolly and Jordan Roeschlaub. The Real Deal first reported news of the transaction.
The debt replaces roughly $238 million in acquisition financing provided by Morgan Stanley in March 2016 to facilitate HNA and MHP’s $436 million purchase of the 21-story, 617,000-square-foot property.
HNA has already unloaded two other U.S. properties, both purchased by Northwood Investors. The first was 1180 Avenue of the Americas, sold to Northwood in February for $305 million; the second was a $300 million deal for 123 Mission Street in San Francisco.
Officials at Natixis were not immediately available for comment. HNA Group, as well as MHP and ATCO, could not immediately be reached.