Brookfield Extends Brookfield Place Ground Lease, Nears Refi for 660 Fifth Ave
A $1.2 billion refinancing for 660 Fifth Avenue is anticipated to be originated by co-lenders Citi Real Estate, Barclays, ING Capital, Bank of America, and Santander Bank. In addition to the commercial mortgage-backed security (CMBS), the lenders will also provide $89.4 million in mezzanine financing. According to city records, the Canada-based firm purchased the 99-year leasehold for the office component in August 2018 for about $1.286 billion, financing the transaction with a $750 million loan from ING Bank and a $350 million mezzanine loan from Apollo Global Management per news reports at the time. Brookfield launched a $400 million redevelopment and modernization of the 1950s-era 1.528 million-square foot tower formerly known as 666 Fifth Avenue. Currently 100% occupied following the 203,054-square-foot lease by Scotiabank in September, with additional big block signings since completion of the renovations including the 221,764-square-foot lease by finance firm Macquarie Group and the 504,000-square-foot leased by Citadel Enterprises. News of the nearing finance package comes about three weeks following Brookfield’s agreement with the Battery Park City Authority (BPCA) to modify and extend the ground lease of its 9.4 million-square-foot office and retail complex in Lower Manhattan known as Brookfield Place. The deal extended the lease term from 2069 to 2119, and the higher ground rent payments are “projected to generate an estimated $1.5 billion of current value for the City of New York and for the Joint Purpose Fund, which supports affordable housed development across New York City,” according to the joint press release by Gov. Hochul and Mayor Adams. In addition, Brookfield is setting a goal to reach net zero greenhouse gas emissions and waste by 2050; anticipates investing approximately $100 million in capital improvements over the next several years in the five building complex, on top of the approximately $900 million previously invested; and will contribute up to $2.5 million for public realm improvements to West Street and set aside up to 10,000 square feet of office space for nonprofits and community organizations, and meet New York State’s Minority and Women Owned Business Enterprises (MWBE) and Service-Disabled Veteran-Owned Businesses (SDVOBs) goals on capital contracts.
Source: https://therealdeal.com/new-york/2025/10/17/brookfield-nears-1-3b-refinance-of-660-fifth/