Wells Fargo, J.P. Morgan Close $250M Refi for 375 Pearl Street
By Cathy Cunningham June 18, 2021 9:00 am
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The big New York City office loans just keep closing.
Sabey Corporation and National Real Estate Advisors (NREA) have sealed a $250 million refinance for their office condo at 375 Pearl Street, sources told Commercial Observer.
Wells Fargo and J.P. Morgan provided a $220 million, 10-year, fixed-rate CMBS loan in the deal, which also includes $30 million in mezzanine debt.
Eastdil Secured’s Grant Frankel and Adam Licari negotiated the financing, sources said.
Proceeds will be used to retire $234 million in existing debt on the property, fund upfront reserves and closing costs, and return $6.5 million in equity to the sponsors.
The financing is collateralized by the 573,083-square-foot, Class A office condominium unit which occupies 16 floors within the 32-story, 806,801-square-foot, office and data center building.
The property is currently 100 percent leased to a tenant roster that includes Rafael Viñoly Architects as well as four New York City agencies: the New York Police Department, the NYC Human Resources Administration, the NYC Department of Sanitation and the NYC Department of Finance.
It was built for the New York Telephone Company back in 1976. Since then, it has also been known as the Verizon Building, One Brooklyn Bridge Plaza and Integrate.Manhattan. Previous owners include Taconic Partners, which bought the building from Verizon in 2007 in a sale-leaseback deal before selling it to Sabey and NREA in 2011.
The building was once on the Daily Telegraph’s list of the most unattractive buildings in the world. But, with Sabey and NREA at the helm, it underwent a sweeping and dramatic renovation in 2016, after which Rafael Viñoly Architects promptly signed its 20-year lease at the property.
Per a Fitch Ratings presale report, sponsorship invested $159 million to convert former data center space into Class A office space. Upgrades included replacing the facade of floors 18 through 31 with a glass curtain wall, plus a new lobby and public plaza. New York City invested $44.5 million in its own buildout, in addition to sponsorship’s investment.
Officials at Wells Fargo and Sabey Corporation didn’t immediately return requests for comment. Officials at J.P. Morgan and Eastdil declined to comment.
