The owners of the Sony Building at 550 Madison Avenue in Manhattan are reportedly seeking about $1.4 billion to refinance the existing debt secured when they purchased the property in 2013.
Developers Joe Chetrit and David Bistricer paid $1.1 billion for the property in March 2013, securing $925 million in acquisition financing originated by SL Green. At the time, SL Green sold off a $600m senior loan to the Bank of China, a $175m senior mezzanine loan to an investment manager, and retained $75m of a $150m junior mezzanine loan.
Chetrit and Bistricer, who plan to convert the former office building into luxury condominiums and a hotel, have bought some additional time to secure new financing by securing a six-month extension on the current debt, Crain’s first reported.
Banks have become less willing to lend large sums as existing regulations, risk retention and capital requirements weigh on them, but a banking syndicate could potentially accomplish the task; as might a refinance from SL Green or some combination of loans from the private ‘shadow banking’ sector, which continues to evade banking regulations and seeks to grow market share.
The 37-story, roughly 853,000 sq ft tower towers over neighboring properties with its distinctive Chippendale-style roof pediment. It was designed by Philip Johnson and John Burgee, originally completed in 1984 as headquarters for AT&T.
Plans for the redevelopment include a new $150 million penthouse and the hotel, on the lower half of the tower, will be branded under the Oetker Collection name.