Newmark Capital Markets and Cooper-Horowitz announced today they have structured a $342,000,000 loan to refinance a prime Class A office building at 850 Third Avenue in Midtown Manhattan. The property’s ownership is a partnership between HNA Property Holdings, ATCO Properties & Management and MHP Real Estate Services.
The Newmark Capital Markets team was led by Vice Chairmen and Co-Heads of Debt and Structured Finance Jordan Roeschlaub and Dustin Stolly, along with Managing Directors Chris Kramer and Nick Scribani. The Cooper-Horowitz team was led by Principals Richard Horowitz and David Horowitz. Newmark Capital Markets and Cooper-Horowitz brokered the $342,000,000 loan with Natixis, Paramount Group and Harbor Group International.
The short-term, floating-rate loan is backed by 850 Third Avenue, a 21-story, 617,322 square foot office building located in the coveted Plaza District, just north of Grand Central Terminal, spans a full block with continuous frontage along Third Avenue between East 51st and 52nd Streets. The building is currently 91 percent occupied by a mix of high-quality tenants in the media, legal, real estate, entertainment, healthcare and financial sectors. The building’s largest tenant, Discovery Communications (the parent company of the Discovery Channel), which occupies 189,470 square feet (31 percent of GLA), has announced that it will be vacating its space upon lease maturity in May 2020.
“The opportunity to re-tenant more than 30 percent of the building positions the property to realize significant upside rent potential, considering the anchor’s rental rate compared to recent leasing at the building and current market levels,” Roeschlaub said.
Newmark Capital Markets and Cooper-Horowitz were engaged to arrange structured financing that would satisfy the existing debt and provide a future funding facility sufficient for leasing costs primarily related to the anchor tenant space. The early notice to vacate from Discovery Communications gives the ownership substantial runway to execute its lease-up strategy.
About Newmark Capital Markets
Newmark Capital Markets, operated by Newmark Group, Inc., is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, our 15,000 professionals operate from more than 400 offices in established and emerging property markets on six continents.
We provide access to a wide range of services, including asset sales, sale leasebacks, mortgage and entity-level financing, equity raising, underwriting and due diligence. The transactions we broker involve vacant land, new real estate developments and existing buildings. We specialize in arranging financing for most types of value-added commercial real estate, including land, condominium conversions, subdivisions, office, retail, industrial, multifamily, student housing, hotels, data center, healthcare, self-storage and special use. For further information, visit www.ngkf.com/capitalmarkets.
Newmark Group, Inc., which is listed on the NASDAQ Global Select Market under the symbol “NMRK”, is a publicly traded subsidiary of BGC Partners, Inc. (“BGC”), a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol “BGCP”. BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol “BGCA”.
Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are “forward-looking statements” that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark’s and BGC’s Securities and Exchange Commission filings, including, but not limited to, any updates to such risk factors contained in subsequent Forms 10-K, 10-Q, or Forms 8-K.