August 30, 2010
By Barbra Murray, Contributing Editor
The premier office tower at 300 Park Avenue in New York City did not have debt attached to it a few days ago, but it does now. Tishman Speyer Office Fund, owner of a 45.9 percent stake in the 773,300-square-foot building, has revealed the closing of the $135 million financing of the property, which currently has an appraised value of $725 million.
Located across from the Waldorf-Astoria Hotel in Midtown Manhattan, 300 Park Avenue first opened its doors in 1955 and underwent major renovations in 1998 and 2000. The 26-story building includes about 747,700 square feet of office space and 21,100 square feet of retail space. Colgate-Palmolive, occupying 503,100 square feet, is the lead tenant at 300 Park, which was 90.8 percent occupied as of June 30.
The loan, secured by a first mortgage on the property, as well as an assignment of leases and rents, is scheduled to mature on January 8, 2014 and features an option for a one-year extension. Tishman Speyer Office Fund walked away with net proceeds of $59 million and will use $8.1 million of the funds to pay down the United States REIT facility, leaving the rest to be held in a lender-controlled interest reserve to pay the interest costs under the United States REIT loan.
For the year ending June 30, 2010, Tishman Speyer Office Fund reported a post-tax accounting loss of approximately $16 million.
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