A joint venture between Helaba Bank and DekaBank provided the $163 million fixed-rate loan for 122 Fifth Avenue, according to Walker & Dunlop. The new financing replaces a $170 million loan from PCCP, a real estate finance and investment management company.
A Walker & Dunlop team of Aaron Appel, Jonathan Schwartz and Keith Kurland arranged the loan on behalf of the landlord.
The refinancing follows a $107 million capital improvement program that transformed the 278,000-square-foot landmark building into a Class A loft-style office building. That investment appears to be paying off. Microsoft and fintech company Chime anchor the building under long-term leases.
The ten-story building between West 17th and 18th Streets, built in 1900, has been owned by Bromley since 1979. In 1987, Barnes & Noble moved its headquarters to the 300,000-square-foot building, where it remained for more than three decades.
After the bookseller was acquired by hedge fund Elliott Management Corp in 2019, it opted not to renew its headquarters lease, prompting the renovation project to upgrade the entire building, including the addition of modern amenities and an 18,000-square-foot rooftop terrace.
The Flatiron District, part of the Midtown South submarket, remains one of Manhattan’s more resilient submarkets, buoyed by technology and financial tenants. Relaxation activity in Midtown South totaled 7.2 million square feet to date, up 69 percent from the previous year, according to CBRE. The availability rate stands at 19.2 percent, down 3.7 percent from a year ago.
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