Durst Organization Secures $1B Financing Package for Manhattan Office Portfolio
NEW YORK CITY — The Durst Organization, a New York-based owner and operator of Manhattan office and residential assets, has closed a financing package totaling $1 billion from multiple lenders for several of its office assets.
The financing included a $600 million loan for five office buildings and a $400 million credit line. The five assets involved in the debt include 655 Third Ave., 675 Third Ave., 825 Third Ave., 114 West 47th St. and 205 E. 42nd St.
Citi Private Bank was the lead lender for the financing, contributing $650 million. As part of the package, JPMorgan Chase, TD Bank, and Bank of New York Mellon each provided $100 million, and City National Bank provided $50 million. Durst will use the loan to refinance its existing debt into a first mortgage debt, and the company will use the credit facility to finance future acquisitions.
Dennis Hellman of Rosenberg & Estis PC, New York’s largest real estate law firm, represented The Durst Organization in the financing deal, with assistance from colleagues Kamilla Bogdanov and Daniel Grobman. Chatham Financial also advised Durst in connection with the financing, while Herrick Feinstein represented Citi Private Bank.
“The structure of this financing is similar to the way a REIT or other institutional owners would finance its real estate assets,” says Hellman. “While it is customary for privately owned real estate companies to separately finance each property, combining the applicable properties into this financing package enabled Durst to both save time and obtain terms that are more borrower-favorable.”
The Durst Organization is the owner, developer and manager of 13 million square feet of Manhattan office towers and 1,950 residential units, with 3,400 additional units currently under development.
Durst’s high-profile holdings include One World Trade Center, One Bryant Park and Four Times Square. The company is also building the $1.5 billion, 2.4 million-square-foot Hallets Point mixed-use project on the Queens waterfront, its first development outside of Manhattan.
— John Nelson