NEW YORK CITY — Rudin has extended an existing $425 million CMBS loan backed by 32 Avenue of the Americas, a 27-story office tower in Manhattan’s Tribeca neighborhood. The New York City-based owner-operator has also announced plans for a $100 million capital improvement program at the 1.2 million-square-foot Art Deco property, which also features a prominent data center/carrier hotel component.
Rudin will introduce a prebuilt program of new work environments at 32 Avenue of the Americas that will range in size from 5,000 to 10,000 square feet. The company will also upgrade the building’s lobby and renovate its street-level retail space. Lastly, Rudin will create a new leasing/marketing center spanning the entire 25th floor, which also features two outdoor terraces that offer views of the Manhattan skyline.
The tower’s mortgage will now mature in November 2029 should Rudin exercise both of its one-year renewal options in 2027 and 2028. Iron Hound Management Co. advised Rudin, which acquired the property in 1999 from AT&T, on the loan modification. The direct lender was not named.
Rudin requested that its loan be transferred to an unnamed special servicer two months ahead of its November maturity in order to begin discussions on the loan modification. The company says it has remained current on all obligations throughout the life of the loan.
“We are grateful to our lender for working cooperatively with us to arrive at a mutually beneficial path forward for 32 Avenue of the Americas,” says Neil Gupta, president and chief investment officer of Rudin. “With this agreement, we will move forward in full confidence with our longstanding business plan, kickstarting an exciting new chapter for one of downtown New York’s most important and iconic buildings.”
Originally known as the AT&T Long Lines Building, 32 Avenue of the Americas is one of only three “highly connected” facilities in New York City that offers infrastructure designed to support the needs of modern media and communications companies, according to Rudin. The property includes two 140-foot radio towers, access to primary and emergency power sources, redundant HVAC systems, fuel storage capacity, access to over 50 telecommunication networks and significant floor load capacity.
The property was 91 percent leased at the time of the loan modification. Office tenants include Dorilton, Cedar, Industrial Color and Industrious, and data center tenants include Verizon Communications, Lumen Technologies and Digital Realty.
Founded in 1925, Rudin owns and operates 14 office buildings spanning approximately 9 million square feet and 17 apartment buildings totaling more than 4 million square feet.
— John Nelson