Nuveen Refinances RXR’s 530 Fifth Avenue With $228M Loan
RXR Realty has nabbed $228 million from global investment manager Nuveen to refinance an acquisition loan on office space at the 26-story 530 Fifth Avenue, according to city records and sources who spoke to Commercial Observer.
RXR owns around 530,000 square feet of office space at the roughly 560,000-square-foot office and retail property, located between 44th and 45th Streets in Midtown.
The new debt package will retire $200 million in previous debt provided by Morgan Stanley (MS) in 2014 that funded RXR’s $300 million purchase of the space, according to city records and information from CoStar (CSGP) Group. It also includes $18.8 million in new indebtedness in the form of a project loan mortgage, but it could not be gleaned what new construction work, if any, will be undertaken. The deal closed on Oct. 15.
RXR, in partnership with Thor Equities and the now Brookfield (BN) Property Partners-controlled General Growth Properties (GGP), bought the asset for a combined $595 million in 2014, according to city records as well as information from CoStar.
As part of the deal, Thor took over the building’s roughly 50,000-square-foot retail condominium, which encompasses the lower level and first and second floors. In October 2017, Thor offloaded the entirety of the retail condo to GGP for just over $134 million, according to CoStar. The retail portion includes about 200 feet of frontage along Fifth Avenue and spans the lower level and ground and second floors.
The property was built in 1957, renovated in 1999 and is currently fully leased, according to CoStar data.
Office tenants in the building include Toronto-based brokerage Avison Young, which inked a deal in July to move its New York City offices into 45,000 square feet within a section of the third floor as well as the entire fourth floor, as CO previously reported.
In September 2018, coworking company Convene signed its largest lease to date at the building, taking 116,000 square feet from the seventh through 10th floors on an 11-year lease, as CO previously reported.
In November 2017, skatewear and shoe retailer Vans signed on for an 8,573-square-foot shop at the lower level and ground floor of the property. The building also added a Duane Reade in February 2018, which took 15,000 square feet on the ground floor.
The property was previously owned by a joint venture between Crown Acquisitions, MHP Real Estate Services (MHP), Rockwood Capital and Jamestown. That investor group acquired the property for $390 million in January 2012 from Joseph Moinian’s Moinian Group and Joseph Chetrit’s Chetrit Group.
Previous owner MHP also has offices in roughly 15,000 square feet on the 17th floor.
Officials at RXR could not be reached. A representative for Nuveen did not immediately respond to an inquiry.