Brookfield Properties is nearing a $1.3 billion refinancing deal for 660 Fifth Avenue, an office tower that recently underwent significant redevelopment. According to a Morningstar presale report, Citi Real Estate, Barclays, ING Capital, Bank of America, and Santander Bank are set to originate a $1.2 billion commercial mortgage-backed securities (CMBS) loan for the property. The lenders will also provide an additional $89.4 million mezzanine loan.
The CMBS loan will be interest-only and has a two-year term with three one-year extension options. Funds from the refinancing will be used to pay off existing debt on the building, including a $750 million loan from ING Group and a $300 million mezzanine loan from Apollo Global Management.
Brookfield invested $400 million in redeveloping the building, which was previously known as 666 Fifth Avenue. Upgrades included installing a new glass facade, renovating the lobby and amenity spaces, modernizing elevators, and improving infrastructure to reduce the property’s carbon footprint.
The 39-story tower comprises 1.3 million square feet and is located two blocks north of Rockefeller Center. It reached full occupancy in September when Scotiabank signed a lease for 205,000 square feet.
Brookfield acquired the long-term ground lease for the property from Kushner Companies in a deal valued at $1.3 billion. This transaction drew scrutiny over potential foreign policy connections involving Jared Kushner since the Qatari government holds investments with Brookfield.
In May 2022, Macquarie Group became the first tenant to sign at the redeveloped property with a lease for 250,000 square feet. Other tenants such as 400 Capital, Stephens, and Viking followed soon after.
Last year, Citadel agreed to take up 504,000 square feet at 660 Fifth Avenue—the second-largest Manhattan lease of its quarter—and is expected to move in by January as the building’s largest tenant.
Brookfield did not respond to requests for comment.
