Manhattan’s Office Market Sees a Rising Number of 10-Figure Refi Deals
New York City continues to lead the nation’s office market recovery following the pandemic, gradually rebuilding confidence among lenders, after lending became “mostly frozen since the U.S. central bank began to hike rates in 2022.” Several of Manhattan’s Class A office buildings have been able to secure billion-dollar-plus refinancings. In October 2024, Bank of America and Wells Fargo co-led the issuance of the $3.5 billion single-borrower Commercial Mortgage-Backed Security (CMBS) that refinanced the multi-building Midtown campus known as Rockefeller Center owned by Tishman Speyer; and in January 2025, the developer was able to secure a $2.85 billion refinancing of the Spiral that opened in 2022 at 66 Hudson Boulevard. Both buildings were about 93% to 94% leased according to press at the time, the latter CMBS deal was led by JPMorgan Chase along with co-lenders the Bank of America, Goldman Sachs, and Wells Fargo. In August 2025, the Durst Organization was secured a $1.3 billion CMBS refinancing for the developer’s 151 West 42nd Street property (formerly known as 4 Times Square). About 92% leased at the time according to reports, the loan was originated by Wells Fargo, JPMorgan Chase, and Bank of America.
More recently in mid-September, news reports announced another billion-dollar-plus refinancing secured by Brookfield Properties and Qatar Investment Authority (QIA). The fully leased 5 Manhattan West building located at 450 West 33rd Street landed a $1.25 billion refinancing, according to reported details by Costar of “presale reports of the bond offering backing the deal from credit-rating firms Moody’s and KBRA.” The loan is being originated by Citi Real Estate Funding, Bank of Montreal, Deutsche Bank, JPMorgan Chase and Société Générale. “Some $985 million of the financing package involves a commercial mortgage-backed securities loan, with the balance expected to be contributed to future CMBS transactions; and the loan matures in five years with a fixed interest rate of 6.35%, according to reports.” An article by Crain’s New York indicated that although the building had been appraised for $2 billion a few months ago, “Brookfield is to borrow only the amount needed to pay down $1.23 billion in debt that’s coming due; and rather than pocket a hefty cash dividend as part of the refinancing, the developer is expected to contribute $9.4 million in cash,” per a reported statement by KBRA. Previously struggling financially, the 16-story building constructed in 1969 was purchased by Brookfield in 2011 and underwent a $350 million renovation that included a full glass recladding of the building’s exterior. Major tenants at the building include Amazon and JPMorgan Chase.
Another nearing 10-figure refinancing for 11 Madison Avenue was recently reported by Crain’s New York. As part of the refinancing package, co-owners SL Green Realty and Prudential Financial would reportedly put up a $52.5 million down payment to secure the new loan, whose five-year term would be half the length of the expiring one” according to reported information from S&P Global. Although the new loan was reportedly expected to carry a 5.8% interest rate, which is 61% higher than the 3.6% rate of the expiring loan, after generating strong demand among institutional investors, the mortgage rate reportedly came in a 5.5% — “30 basis points below expectations.” In addition, the “yield of less than 9%,” is about 25% lower than “yields as high as 12% being demanded [not long ago] to compensate for the risk associated with investing in office buildings.” The landmarked 30-story Art Deco building that was intended to reach 100 floors before plans were abandoned with the onset of the Great Depression was acquired by SL Green in 2015 for $2.3 billion plus $300 million in costs associated with lease-stipulated improvements, and a year later the REIT sold a 40% stake to Prudential’s asset management division, PGIM.
Source: https://product.costar.com/home/news/513774595
Source: https://therealdeal.com/new-york/2025/08/06/durst-nears-1-3b-loan-to-refinance-one-five-one/