A group of banks led by JPMorgan and HSBC has provided RXR Realty with a $185m construction loan for the repositioning of 75 Rockefeller Plaza in Midtown Manhattan, Real Estate Capital has learned.
JPMorgan served as the lead agent on the deal, while HSBC was co-agent and Sumitomo Corporation and SunTrust Banks provided the balance.
The four-year loan, which carries a loan-to-value just under 60%, will allow RXR to move forward with an extensive renovation of the building.
The gut renovation will include a new lobby, restoration of the building’s landmarked limestone façade, along with new elevator cabs, mechanical, electrical, plumbing, HVAC systems and more.
“You name it, it’s getting demolished and rebuilt in a modern environment,” William Elder, EVP at RXR, told Real Estate Capital.
The expected cost of the renovation is about $150m, he said.
The first phase of the process, essentially stripping the building down to its shell by demolishing any prior modifications, has begun and is 65% complete, Elder added. He declined to comment on the loan.
The New York-based real estate firm signed a 99-year triple-net lease for the property with its owner, British department store tycoon Mohamed Al Fayed, in January of last year. The lease became effective this August and was delivered vacant as promised after one-time anchor tenant Time Warner Cable and a number of additional office and retail tenants departed upon the expiration of their leases.
The firm ultimately hopes to draw higher rents from a range of tenants spanning the finance, law, social media and tech industries. RXR has hired Cushman & Wakefiled to handle both the office and retail leasing.
The 623,000 sq ft, 33-story building, which completed in 1947, sits across from Tishman-Speyer’s Rockefeller Center complex, with views of the plaza’s skating rink and the Rockefeller Center Christmas tree during the holidays. It is located on 51st Street, between 5th and 6th Avenues.
Elder said construction will take about 18 months and RXR plans to re-open the building in the first quarter of 2016.