Deutsche Pfandbriefbank Makes $90M Green Loan Debut at 1245 Broadway
By Cathy Cunningham March 10, 2023 10:48 amreprints
GDS Development Management (GDSNY) and Corem Property Group AB have sealed a $90 million refinance for their office building at 1245 Broadway, Commercial Observer has learned.
Deutsche Pfandbriefbank (PBB) provided the debt in a transaction arranged by Newmark’s Dustin Stolly, Jordan Roeschlaub and Nick Scribani. The takeout financing — described as “low-leverage” in a release — will fund both current and future tenant fit-outs at the property.
The deal marks the German bank’s first green loan in the U.S., following the rollout of its sustainable finance product in the U.S. earlier this year.
“We are delighted to be partnering with a lending institution with PBB’s stellar reputation for the financing at 1245 Broadway,” Alan Rudikoff, co-founder of GDSNY, said in a statement. “This property is well positioned to capitalize on the ‘flight to quality’ seen in the office sector.”
PBB’s scoring criteria for eligible properties under its green lending program comprises 10 components, and 1245 Broadway ticked many of its boxes, being certified LEED Gold and also offering tenants the latest health-focused advances in both air quality and touchless technology, according to the release.
The 23-story building, at the corner of Broadway and 31st Street in Manhattan’s NoMad neighborhood, was designed by Skidmore, Owings & Merrill with eco-friendly features throughout.
Construction wrapped last year, and the building is now home to several buzzworthy creative tenants such as film production companies A24 Films, 101 Studios and Wonderview Studios, online advertising firm GumGum and video gaming developer Avalanche Studios Group.
The loan closes during a time of continued choppy debt markets, but “Class A-plus institutionally-owned office product, irrespective of the difficult capital markets environment, continues to attract backing from world-class capital like PBB,” Stolly said in a statement. “We’re looking forward to seeing this new partnership succeed by bringing ownership’s vision of the newly constructed property into fruition.”
“1245 Broadway has quickly gained a reputation as one of Manhattan’s environmentally sustainable trophy office buildings, and our organization is pleased to be playing a role in its continued success,” Andrew Fleming, a director at PBB, said in a statement.
Cathy Cunningham can be reached at firstname.lastname@example.org