Manhattan Office Tower Lands $100M Refi
- May 25, 2018
The office tower at 40 Exchange Place in Manhattan’s Financial District has been refinanced to the tune of $100 million. GFP Real Estate and Northwind Group, owners of the 300,000-square-foot property, secured the loan through Capital One Bank.
Developed in 1902, 40 Exchange is just emerging from a comprehensive renovation at the hands of GFP and Northwind. The partners kicked off a capital improvement program soon after acquiring the 20-story building from Weiss Realty for $115 million in late 2016.
“We are excited to reach the final stages of the transformation and full renovation of 40 Exchange Place,” Brian Steinwurtzel, co-CEO of GFP Real Estate, said in a prepared statement. “Leasing activity has been strong, and we felt the time was right to refinance from a construction loan to long-term financing.”
The Capital One financing came in the form of a 10-year, fixed-rate loan arranged by commercial real estate services firm Newmark Knight Frank. It wasn’t just banks that were attracted to the 40 Exchange opportunity. NKF also fielded responses from insurance companies and conduits as well.
Refinancing activity for all types of commercial real estate in the U.S. has been on a consistent upswing since 2015, reaching a record $246 billion in 2017, according to a report by NKF. Properties refinanced in the last three years account for roughly 50 percent of the refinance volume over the past 10 years.
There’s been no shortage of refinancings in the Manhattan office market. Notable transactions announced in the second quarter include joint venture partners Jack Resnick & Sons and Ruben Cos.’ securing of a $205 million loan through MetLife Investment Management for the 37-story asset at 110 E. 59th St. And more recently, Brookfield Properties landed a $1.2 billion loan, provided by Landesbank Baden-Wurttemberg, for the 1.8 million-square-foot 5 Manhattan West office and retail tower.
Image courtesy of Northwind Group