An office tower in one of Manhattan’s busiest neighborhoods has netted a major CMBS refinancing deal.
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The owners of Deutsche Bank Center are expected to close a $1.1B refinancing deal at the end of the month, according to a new report from Fitch Ratings.
The CMBS loan refinances existing debt on the 1.1M SF office tower at 60 Columbus Circle and will be used to pay closing-related costs totaling approximately $10M. The new floating-rate, interest-only financing has a two-year term with three one-year extension options.
Fitch said the loan represents 66.7% of an appraised value of $1.65B.
The funding will be co-originated by German American Capital Corp. and Wells Fargo Bank, which will act as mortgage loan sellers.
Deutsche Bank is the anchor tenant, occupying 93.5% of the property on a 20-year lease that started in 2021, with another 20-year renewal option, per Fitch.
The sponsor is a joint venture of affiliates of The Related Cos. and two sovereign wealth funds, the Government of Singapore Investment Corp. and the Abu Dhabi Investment Authority.
Related’s affiliates own roughly a 3% interest, while affiliates of GIC and ADIA own 48.1% each.
Related, GIC and ADIA didn’t immediately respond to requests for comment.
The property, which Fitch says is now 100% occupied, was previously known as the Time Warner Center but was renamed in 2018 after the media company moved to Hudson Yards and Deutsche Bank struck a deal to move its HQ.
The tower sits within the broader 2.8M SF mixed-use Deutsche Bank Center.
The new loan is expected to close Oct. 29.
A $1.5B single-asset, single-borrower commercial bond deal, lined up with the same sponsors, fell apart in 2022 over bond investor concerns about market weakness and volatility.
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