NEW YORK CITY — JLL’s Capital Markets group has arranged the $1.1 billion refinancing of 3 Bryant Park, a 42-story office tower located at 1095 Avenue of the Americas in New York City. The 1.2 million-square-foot trophy building is situated within the Bryant Park neighborhood of Midtown Manhattan.
Christopher Peck, Drew Isaacson, Lauren Kaufman, Jennifer Zelko and Christopher Pratt of JLL arranged the refinancing on behalf of the owner, Ivanhoé Cambridge, and the property manager, Houston-based Hines. Ivanhoé Cambridge purchased 3 Bryant Park in 2015 for $2.2 billion.
Wells Fargo, Bank of America and Bank of Montreal were the lead lenders for the refinancing. Further details of the financing were not released.
Located adjacent to Manhattan’s Bryant Park and the 42nd Street Subway station, 3 Bryant Park was 97.2 percent leased at the time of financing to tenants including Salesforce, which has signage atop the tower. Other tenants include Stifel, Dechert LLP, US Bank, Lloyds Bank and Standard Chartered.
The tower also includes retail space leased to tenants including Whole Foods Market, Equinox, Valbella, Shake Shack and Rosetta Bakery. Other offerings at 3 Bryant Park include a new conference center, sky lobby with a coffee bar and more than 16,000 square feet of public space. According to LoopNet Inc., 3 Bryant Park was originally developed in 1972 and renovated in 2008.
Manhattan’s Bryant Park “micro-market” stands out as one of New York City’s strongest submarkets with a vacancy rate for trophy office assets below 1 percent, according to JLL research. Additionally, rental rates at Bryant Park’s trophy office properties are reportedly 50 percent higher than the average for Class A properties in Midtown Manhattan.
“The successful refinancing of a globally renowned trophy office such as 3 Bryant Park signals a shift in market perception and offers an optimistic outlook for the future,” says Peck.
Ivanhoé Cambridge is the real estate subsidiary of CDPQ, a global investment company based in Quebec City. The company invests in high-quality real estate properties across several property types, including two office towers within downtown Toronto’s CIBC Square that the firm is co-developing with Hines.
— John Nelson