New Partnership Created in Financial Restructuring of a 6th Ave Building

A group of lenders including Goldman Sachs and Blackstone have provided a 5-year $320 million loan as part of the financial structuring of 620 Avenue of the Americas. The deal reportedly involved global investment management firm Hudson Bay Capital buying out an interest from institutional investors to become an equal partner in the ownership of the 500,000-square-foot portion of the 700,000-square-foot office and retail building. Currently the building is encumbered by $421.5 million in debt that was recently consolidated according to city records, with an entity associated with Blackstone Mortgage Trust listed as the administrative agent of the loan which included a $334.416 million senior loan, $14.235 million building loan, and a $72.849 million project loan provided in 2019 by Goldman Sachs at a time when the building was “flush with retail and office tenants.” However, following the pandemic, the loss of two large tenants that declared bankruptcy — WeWork, which leased approximately 213,358 square feet in 2019 and Bed Bath and Beyond’s 82,000-square-foot space leased in 2020 upon downsizing from 92,000 square feet, increased the building’s vacancy to about 50%. Subsequently, RXR Realty was able to renegotiate direct leases with the two tenants that were subleasing the WeWork space – mobile banking app firm Current leased 72,000 square feet in 2023, resulting in an expansion of the 42,000-square-foot space they previously occupied, followed by the 140,345-square-foot lease secured in May 2024 with Palantir Technologies, but the big block of retail space formerly occupied by Bed Bath and Beyond still remains vacant, with Marshalls and TJ Maxx occupying the remaining 70% of the retail space within the building.

Source:    https://therealdeal.com/new-york/2024/10/18/rxr-hudson-bay-split-ownership-recap-620-sixth-avenue/