Tishman Speyer JV Lands $3.5B for Rockefeller Center
In the largest CMBS loan deal for a single office asset to date, the joint venture of Tishman Speyer and Henry Crown & Co. has obtained $3.5 billion in refinancing for Rockefeller Center in Manhattan.
Bank of America and Wells Fargo served as co-lead managers on the five-year loan carrying a fixed interest rate of 6.23 percent.
Proceeds will repay the existing 20-year, $1.7 billion CMBS debt, along with mezzanine financing, scheduled to mature in May 2025. The note will also establish reserves for lease-related contractual obligations.
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Rockefeller Center came online almost a century ago and features 13 buildings totaling 7.3 million square feet. The joint venture became the sole owner of the 22-acre Midtown complex in April 2001, after purchasing the remaining 95 percent stake in the property for $1.85 billion, according to CommercialEdge.
The Class A campus comprises about 6 million square feet of office space, multiple retail destinations, event venues, dining options and tourist attractions. Recently, the ownership opened the 24,000-square-foot park atop Radio City Music Hall.
Rockefeller Center was 93 percent leased at the time of closing. The tenant roster includes Deloitte, Simon & Schuster, JP Morgan Chase and Lazard. Additionally, Christie’s signed a 25-year renewal for 400,000 square feet at 20 Rockefeller Plaza this August.
Over the years, the campus went through multiple capital improvements. Tishman Speyer renovated the Top of The Rock observation deck to provide new attractions and opened Skylift, a revolving glass-enclosed platform that elevates visitors nearly 900 feet in the air.
Inspired by the campus’ original plans, the ownership also restored the Channel Gardens and Rink areas as entrance points for tourists. In early 2020, the company obtained approval from the Landmarks Preservation Commission to open the underground passageways encircling the iconic Rink.
Manhattan’s largest office financing deals this year
Despite the economic constraints experienced during the last couple of years, significant office loans and refinancing transactions continued to close in Manhattan. In addition to strong fundamentals, the market recently saw an increase in year-over-year office attendance.
In June, Vornado Realty Trust obtained a $400 million refinancing loan for 640 Fifth Ave. The note has a fixed rate of 7.47 percent and is set to mature in July 2029.
And, two months prior, L&L Holdings Co. landed $911 million to refinance the 47-story 425 Park Ave. Sumitomo Mitsui Trust Bank originated the five-year note for the 670,000-square-foot tower.
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