JLL SECURES $167M IN MEZZANINE FINANCING FOR 237 PARK AVENUE
NEW YORK CITY — Jones Lang LaSalle’s capital markets team, acting on behalf of a partnership between RXR Realty and Walton Street Capital, has secured up to $165 million in mezzanine financing for 237 Park Avenue, a 22-story, 1.2 million-square-foot office tower in Midtown Manhattan. SL Green Realty Corp. and Blackstone provided a mezzanine loan, which carries an interest rate of 7 percent and provides the borrowers $125 million upfront and could provide up to an additional $40 million. The asset was acquired for $810 million and the partnership has assumed a $420 million securitized senior mortgage. Approximately 98 percent of the building’s tenants are investment-grade companies, including J. Walter Thompson, UBS, J.P. Morgan Chase, Credit Suisse and Jennison Associates. Formerly the Railroad Mail Services Building, the property features a dramatic atrium lobby and includes 153 feet of retail frontage on Lexington Avenue and 145 feet of retail frontage on Depew Place. Kellogg Gaines, managing director, and Dustin Stolly, executive vice president, led the Jones Lang LaSalle team in the transaction.