Another trophy office skyscraper in New York City has landed a new mortgage worth more than $1B.

Ivanhoé Cambridge and Hines secured a new CMBS loan for more than $1.1B for 3 Bryant Park, a 1.2M SF office property in Midtown Manhattan that is 97.2% leased, according to a release.

The funding came from a group of lenders led by Wells Fargo, Bank of America and Bank of Montreal. Ivanhoé Cambridge, a subsidiary of Canadian pension fund Caisse de dépôt et placement du Québec, owns the office building, while Hines is its asset and property manager.

A JLL Capital Markets team of Christopher Peck, Drew Isaacson, Lauren Kaufman, Jennifer Zelko and Christopher Pratt represented Ivanhoé Cambridge in securing the debt.

The five-year loan comes with a floating interest rate of 2.25% above the secured overnight financing rate. SOFR was at 4.35% at the end of last week, which would make the initial interest paid roughly 6.6%.

“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,” Peck said in a statement.

Offices in the Bryant Park submarket have one of the city’s lowest vacancy rates at 0.8%, according to JLL. Owners command rents roughly 50% higher than Class-A offices elsewhere in Midtown.

Tenants inside Ivanhoé Cambridge and Hines’ 42-story tower include Salesforce, Lloyds Bank and Standard Chartered, with Equinox and Whole Foods occupying retail space at the base of the building.

“The property's exceptional tenant roster, prime location, and record utilization have positioned this transaction as arguably the most significant office refinancing of its scale in the post-pandemic era,” Peck said.

The tower, which overlooks Bryant Park at the intersection of West 42nd Street and Sixth Avenue, is the fourth office property to land a huge refinancing deal already this year, indicating a growing appetite for office debt in the CMBS market for certain properties.

Including the deal for 3 Bryant Park, five of the largest office refinancing deals struck in NYC since October total almost $10B.

Tishman Speyer and Henry Crown secured nearly $2.9B in CMBS debt for The Spiral in the first week of the year, a deal that allowed the owners to cash out roughly $1B in equity. Tishman Speyer also refinanced Rockefeller Center for $3.5B in October, which was the largest issuance in history for a single office asset.

Fisher Brothers on Monday announced it secured a $500M refinancing for the 42-story tower at 299 Park Ave. The loan, also packaged into a single-property security, has a $300M AAA-rated chunk of the loan priced 95 basis points above the benchmark interest rate, Crain’s New York Business reported. Fisher Brothers and its partner Alaska Permanent Fund Corp. cashed out roughly $95M with that loan.

And Irvine Co. is in talks for a $1.5B refinancing deal for the MetLife Building at 200 Park Ave., which was scheduled to price this week at a 6.25% interest rate, Commercial Observer reported.