NEW YORK CITY — In what is perhaps the largest loan financing since the collapse of the credit markets, the Bank of America Tower at One Bryant Park has received approximately $1.28 billion to refinance the property. Reports indicate that the loan will be used to retire the property’s existing construction loan, pay back investors and complete construction of the tower.
Groundbreaking for the Bank of America Tower first occurred in 2004. The project was initially financed with $650 million in Liberty Bonds, a program that provided tax-exempt financing for areas of lower Manhattan affected by the 9/11 attacks. The size of the new financing is estimated at $325 million larger than the initial construction loan, representing an appreciation of the property. Construction is now on schedule to be complete by early 2010.
The project is owned by a 50/50 joint venture between The Durst Organization and Bank of America. The tower, which was designed by Cook + Fox Architects, contains 2.1 million square feet of office space over 55 stories. It is located in New York City’s Times Square, adjacent to Henry Miller’s Theatre, which is also being redeveloped by the partnership. The tower is currently 98 percent leased, with Bank of America serving as the anchor tenant. It is expected to apply for LEED-Platinum certification and upon receiving the designation, would be one of, if not the only, skyscrapers in the country to receive the U.S. Green Building Council’s highest award for sustainable construction.
In a statement, New York City Mayor Michael Bloomberg said, “the financing of the Bank of America Tower at One Bryant Park is a great vote of confidence in the strength and vitality of our city’s long-term economic future.”
The loan was provided by a consortium of banks, most notably, Bank of America itself. Additional lenders include The Bank of New York Mellon, Wells Fargo Bank, Westdeutsche Immobilien Bank and Heleba Bank.
— Coleman Wood