A loan for $235 million has been secured by SL Green and Jeff Sutton’s Wharton Properties to refinance the 12-floor building located at 724 Fifth Avenue, in the heart of New York’s Plaza District that houses Prada’s flagship store.
According to loan documents, a loan for $325 million from Goldman Sachs in 2014 has been replaced by a loan for the same amount provided by Aareal Capital Corporation.
In 2012, Wharton partnered with SL Green purchased the 65,000-square-foot building located at 724 Fifth Avenue, between 56th and 57th streets, for $200 million.
In the 2014 Goldman financing, the landlords made $150 million in profits. The Goldman loan replaced Wells Fargo loan for $120 million. According to The Real Deal’s sources, SL Green and Sutton renewed a lease for Prada in 2013 for approximately $19 million a year until 2028 for 20,000 square feet of retail space within 724 Fifth.
TRD reports, “Aareal, a subsidiary of Germany-based Aareal Bank, recently provided a $575 million acquisition loan to Singaporean sovereign wealth fund GIC, which bought a 95 percent stake in 60 Wall Street from Paramount Group and Morgan Stanley. The deal values the Deutsche Bank headquarters at $1.1 billion. Earlier this week, SL Green said the National Pension Service of Korea took a 27.6 percent stake in office tower One Vanderbilt and Hines took another 1.4 percent, which will inject $525 million in equity into the project. The Marc Holliday-led REIT expects One Vanderbilt to generate $198 million in net operating income once the 1.7 million-square-foot tower is built and fully leased. The tower is expected to cost more than $3.2 billion.”
By Mark Snyder