Aareal Bank has provided a $97m loan to SL Green Realty Corp. and Jeff Sutton for the refinancing of the retail component at 650 Fifth Avenue.
The two-year loan carries a coupon of Libor plus 350 basis points.
The joint venture struck an agreement with the US government to acquire the 49-year leasehold interest on the 30,000 sq ft retail space in November of last year.
The agreement came after a New York federal judge forced the embattled former owners of the 36-story, 395,000 sq ft tower to forfeit all of their assets subject to litigation brought by the US government alleging ties to the Iranian government and acts of terror.
The retail deal included the building’s basement, ground-level, second and third floors, with major tenants including Juicy Couture, Godiva Chocolate and Devon & Blakely remaining in place.
The judge finalized the forfeiture of the $500m building to families of terror victims in April of this year.
SL Green is a New York-based real estate investment trust made up of Manhattan office properties. Jeff Sutton is a New York-based developer and billionaire known mainly for his pioneering retail work. The two entities are frequent collaborators.