Durst Org. Secures $120M Loan for NYC Office Condo

Acting as administrative agent, Capital One provided financing for the 150,000-square-foot space at 855 Avenue of the Americas.
855 Ave. of the Americas. Image via Google Street View

Permanent financing totaling $120 million is in place for the Manhattan office condominium at 855 Avenue of the Americas, courtesy of Capital One. The financial company acted as administrative agent for the loan provided to the Durst Org., owner of the 150,000-square-foot property.

Spanning five floors, the office condo is part of the 570,000-square-foot EOS mixed-use tower Durst developed in 2016. Athletic footwear company Nike USA occupies the office component in its entirety, under a lease the company signed in early 2017.

“This transaction highlights our appetite for low-leveraged core office asset financings,” Jonathan Smith, a vice president with Capital One’s Commercial Real Estate Group, said in a prepared statement. “In this case, the fact that we have an exceptional sponsor for a property in the growing Penn Plaza submarket makes it even more attractive.”

The financing for 855 Avenue of the Americas came in the form of a 10-year loan, $50 million of which Capital One held while syndicating the balance. TD Bank took $45 million and Bank United took the remaining $25 million, a Capital One spokesperson told Commercial Property Executive.

Capital One has a history with 855 Avenue of the Americas, as the bank was part of the consortium behind the original construction financing for the development.

Manhattan opportunities

The Capital One Commercial Real Estate Group’s penchant for core office deals is evident in other notable Manhattan transactions over the last year. The bank provided joint venture partners BlackRock Real Estate Assets and L&L Holding Co. with a $175 million mortgage for 600 Third Ave., a premier 575,000-square-foot office building. Capital One also came through with a $100 million loan for GFP Real Estate and Northwind Group’s refinancing of 40 Exchange Place, a 300,0000-square-foot office in the Financial District.