MetLife $170m loan backs Shorenstein office property

MetLife has provided Shorenstein Properties with $170m to refinance the office building at 850 Third Avenue in Midtown Manhattan. The new three-year floating rate loan replaces a $180m loan Deutsche Bank provided in 2010, a person familiar with the deal said. The office complex, built in 1962, is located between 51st and 52nd Streets, on the east side […]

MetLife has provided Shorenstein Properties with $170m to refinance the office building at 850 Third Avenue in Midtown Manhattan.

850The new three-year floating rate loan replaces a $180m loan Deutsche Bank provided in 2010, a person familiar with the deal said.

The office complex, built in 1962, is located between 51st and 52nd Streets, on the east side of Midtown Manhattan.

It was redeveloped in 1996 and then refurbished in 2008, the same year San Francisco-based Shorenstein scooped a majority stake in the property – and the Park Avenue Tower – from New York City-based developer Harry Macklowe for a reported $930m.

Macklowe, then facing bankruptcy prior to his post-recession comeback, was forced to hand the properties back to senior lender Deutsche Bank, which promptly put the building on the market.

In July of this year, Shorenstein sold the Park Avenue Tower to Blackstone Group for a reported $750m, but it retained 850 Third Avenue. The firm owns one other Manhattan property, the office building at 477 Madison Avenue.

An announcement from MetLife noted that the property is currently 91 percent leased, and current tenants include Discovery Communications, the City of New York, Shearman & Sterling LLP and Radio One.

Robert Merck, global head of real estate for MetLife, in a statement wrote that 850 Third Avenue is a “proven property with a strong tenant base in a core market for MetLife.”

“We have a great relationship with Shorenstein Properties and look forward to working with them in this and other markets in the future,” he said.

 

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