Irvine Closing in $ 1.5B Refi of Metlife Building – The real deal

California -based owner of the famous Metlife building can be in two states of mind: dizzy over the refinancing of the property or deprived of a sharp increase in interest rate.

Irvine is close to refinancing the property of 200 Park Avenue at Midtown Manhattan with a $ 1.5 billion loan, CRAIN’s reported. The refinancing is expected to end on February 10, according to KBRA.

The loan will bring an interest rate of 6.25 percent in 10 years. This is a significant jump of a 3.6 percent interest rate that Donald Bren’s company has previously been confronted and the debt service costs will double to approximately $ 100 million a year.

The 58-storey building of 3 million square feet is 94 percent occupied and generates $ 170 million in net operating income. The property that included Tishman Spier until it was redeemed last year for an unknown price has invested $ 180 million in the property dating from the year before the pandemic. Updates include processed lobby and improved links with Grand Central Terminal.

In 2023, the Irish government hired 43,000 square feet in the Metlife building, planning to move elsewhere from Park Avenue next year.

Ervine and Tishman acquired the building in 2005 for $ 1.7 billion. This is the only New York holding for Irvin to have recently paid its balance sheet of $ 431 million for a prominent commercial property in the Chicago River to the north, positioning the 60-storey property on North Lazal Street to compete for tenants S

The increased Irvine interest rate is indicative of where the mortgage environment has been moving in recent years. Elsewhere in Manhattan, the SL Green interest rate in the Graybar building increased from 3.8 % to 8.1 % after long -term extension, while Stephen Roth’s interest rate for Bloomberg Tower jumped from 1.1 to 5 % after as he provided a mortgage of $ 400 million.

– Holden Walter-Worner

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