Midtown Manhattan Tower Receives $125M Financing

Pearlmark will use the proceeds from the loan to refinance the LEED Silver-certified Tower 56, as well as cover the costs of future leasing efforts.
Tower 56

Pearlmark has landed a $125 million loan for the refinancing of Tower 56, a Class A office building in Midtown Manhattan. The funds will be used to pay off the existing debt and to cover upcoming leasing costs. The Blackstone Group acted as the borrower. According to Yardi Matrix, the new mortgage replaces a $92.5 million loan provided by CIBC in 2013.

The 186,811-square-foot property spreads across 33 stories and was designed by Fox and Fowle Architects. After it changed ownership in 2008, the LEED Silver-certified asset underwent a $30 million capital improvement program, resulting in a renovated lobby as well as upgraded building and mechanical systems. Tower 56 is currently 92 percent occupied by a variety of tenants from the finance, legal, technology and entertainment sectors.

Located at 126 E. 56th St., in the borough’s Plaza District, the property offers easy access to a wide array of restaurants, retailers, accommodation options and landmarks. Multiple subway and bus stations provide quick access throughout the area.

Newmark Knight Frank Capital Markets Vice Chairmen & Co-Heads Jordan Roeschlaub and Dustin Stolly, along with Managing Directors Nick Scribani and Chris Kramer arranged the financing. “Pearlmark’s extensive capital improvement program has further positioned Tower 56 as a top destination for tenants in the Plaza District,” Roeschlaub said in a prepared statement.

In June, NKF Capital Markets and Cooper-Horowitz structured a $342 million loan to refinance 850 Third Ave., also in Midtown Manhattan. The team acted on behalf of HNA Property Holdings, MHP Real Estate Services and ATCO Properties & Management.

Image courtesy of Yardi Matrix