RXR Realty Provides $220M in Equity to Secure $1.2B Loan Extension

At a time when landlords are facing heightened challenges to refinance office building loans, the recently secured extension of a $1.2 billion loan by RXR Realty represents what “could serve as a model for borrowers.” Morgan Stanley and AIG are the lenders on the modified loan on the fully leased 1285 Sixth Avenue property. RXR put in $220 million of equity as part of the deal to provide for reserves and pay down the loan’s balance to $980 million; and while the 6% interest rate for the 5-year extension is higher than the senior loan’s original 4% rate, it “provides a $60 million facility to pay for future capital costs” and gives the building “some time to get through this liquidity period,” with the hope that upon term completions “we’ll be in a better environment to refinance.” In a similar scenario, RFR Realty secured an extension of its $1 billion loan at the Seagram Building at 375 Park Avenue upon agreeing to pay down $40 million on the loan over the next two years.

Source:    https://therealdeal.com/new-york/2023/10/27/rxr-modifies-1-billion-mortgage-at-1285-sixth-avenue/