Landlord Secures $750M Refinancing for Park Ave Tower at a Cost of $283M
A sign of the continued reluctance among banks to lend to “even the finest of office buildings” has surfaced once again in the recent refinancing of 277 Park Avenue. The existing $750 million loan provided by Deutsche Bank in August 2014 that included a $250 million gap mortgage expired last month. Landlord, the Stahl Organization was able to secure a refinancing after providing a $283 million down payment according to reported information from bond-rating firm KBRA. The new loan has a five-year term and an interest rate of 7.01% —nearly double the rate of the previous mortgage. JPMorgan Chase currently occupies almost 50%, or about 900,000 square feet of the full block tower located between East 47th and 48th Streets under leases expiring between 2026 and 2028, with plans to vacate the space shortly after construction completion of its new headquarters at 270 Park Avenue.