Blackstone Mortgage Trust Provides $270M Refi for 799 Broadway
By Cathy Cunningham June 16, 2022 9:00 amreprints
Columbia Property Trust has landed a $270 million refinance for its newly constructed trophy office property at 799 Broadway, Commercial Observer can first report.
Blackstone Mortgage Trust provided the financing, which closed recently.
“We are thrilled to partner with Columbia Property Trust to refinance and support this state-of-the-art office building,” Michael Eglit, head of U.S. originations for Blackstone Real Estate Debt Strategies (BREDS), told CO. “We are seeing continued demand for the highest quality office space in New York City, and 799 Broadway is well suited for strong occupancy and growth.”
Situated at the intersection of Broadway and East 11th Street, 799 Broadway is a 12-story office building designed by Perkins + Will. The LEED Gold-certified building has been designed to meet the health and wellness criteria of the WELL Building certification program, and also has a Fitwel two-star rating.
Not all office is created equal, and an undeniable trend of flight to quality has continued to build throughout the pandemic. As discerning tenants iron out their return-to-office plans, 799 Broadway aims to meet employees’ desires for outdoor space as well as their health and wellness needs in the post-COVID world.
With 15-foot ceiling heights and floor-to-ceiling windows, it offers plenty of light and air, but the building also includes more than 17,000 square feet of outdoor space, with private outdoor terraces on most floors plus a courtyard garden off the main lobby. Amenities include a luxury fitness center, a cellar lounge and a bike room.
Columbia acquired the property’s site in 2018, and the building’s construction wrapped in April. Since December 2021, roughly 117,000 square feet in leasing has been completed. As of May, the building was 70 percent leased to a roster of tech and financial tenants, with recent signings including investment management firm Wellington Management taking four full floors — or, 71,000 square feet — in April, and Bain Capital Ventures taking 9,000 square feet last November.
Blackstone has underscored its commitment to differentiated office product, and the 799 Broadway is in good company with previous debt investments the firm has made. Among these is the $911 million loan, provided by a BREDS-led consortium, for L&L Holding’s 425 Park Avenue.
The firm has been busy cementing its belief in New York City office on the equity side, too, as evidenced by its acquisition of a 49 percent stake in 1 Manhattan West in March.
Eastdil Secured negotiated the 799 Broadway financing.
Columbia Property Trust officials declined to comment.
Cathy Cunningham can be reached at email@example.com