Goldman Sachs Mortgage Company has provided a $650m, 10-year loan to the State Teachers Retirement System (STRS) of Ohio to refinance the former IBM building, 590 Madison Avenue.
The fixed-rate facility retires a portion of Goldman Sach’s original $350m facility made in 2007.
STRS of Ohio, one of the largest pension providers in the US, had been exploring options last year to sell a 49% equity stake in the tower, which is valued at £1.5bn, but decided to seek refinancing instead earlier this year.
It has interests in 20 assets, primarily office buildings located in New York, valued at around $5.6bn, according to Real Capital Analytics.
Cushman & Wakefield’s equity, debt and structured finance team in New York arranged the senior loan.
The 43-storey, 1 million sq ft office building in mid-town’s Plaza District was completed for the IBM computer company to use as its headquarters in 1983. It was renovated in 2006 and includes lower level retail space and a 78-car garage.
IBM sold the building in 1994 for $200m to a joint venture run by the developer Edward J. Minskoff, New York-based investors Odyssey Partners and STRS of Ohio.
Along with IBM, which is the largest tenant although it is no longer its headquarters, other occupiers include investment bank Morgan Stanley, Aspen Insurance and law firm Cromwell & Moring.