Meridian Masterminds Major CMBS Loan for Manhattan Asset
- Mar 06, 2015
By Barbra Murray, Contributing Editor
The Moinian Group wanted to refinance its office and retail buildings at 535 and 545 Fifth Ave., and Meridian Capital Group has made it happen. Meridian recently orchestrated a $310 million CMBS loan for the approximately 522,200-square-foot, two-property collection on Moinian’s behalf.
Sited in the heart of Midtown Manhattan, 535 and 545 Fifth encompass a total of 437,200 square feet of office space and 85,000 square feet of retail. The 35-story 535 Fifth made its debut in 1927, and the neighboring 14-story tower at 545 Fifth opened its doors as a hotel that same year. Both properties have since been extensively renovated, repeatedly. Today they are both premier office-retail destinations; they’re the kind of assets that attract money.
With Meridian helming negotiations, a national CMBS lender came through with the financing for 535 and 545 Fifth, providing a 10-year loan with a desirable fixed-rate below 4 percent.
“Meridian Capital structured a loan that greatly benefitted the ownership of this Class A New York City property,” Drew Anderman, senior managing director with Meridian, noted in a press release. “We took advantage of the historically low interest rates and closed the financing prior to the 545 Fifth Avenue corner lease, while the remaining portion of the retail space is being retrofitted and repositioned to be re-tenanted.”
The NBA’s lease of 24,000 square feet of space at 545 Fifth last year marked one of the largest new retail leases of 2014.
Meridian was unavailable for further comment.
Moinian snapped up 535 and 545 Fifth, along with 505 Fifth in 2005, when the three buildings were known as the Zeus Portfolio.
In February 2015, Moody’s Investors Service announced it had been informed that Moinian had elected to defease its mortgage loan on 535 and 534 Fifth with U.S. Government Securities. The rating’s service determined that the proposed defeasance would not affect Credit Suisse Commercial Mortgage Trust, Series 2006-C3.