Rosenberg & Estis, P.C. served as legal counsel to The Durst Organization in a complex $1.5 billion debt refinancing that involved multiple office towers in New York City, including 1133 Avenue of the Americas and 114 West 47th Street.
Rosenberg & Estis founder Gary M. Rosenberg; members Dennis I. Hellman, Eric S. Orenstein and David B. Horn; of counsel Stefanie M. Graham, and associates Casey E. Delaney and Zachary M. Rockoff, represented Durst in the transaction.
“This transaction provided a unique opportunity for institutions to invest in Manhattan’s leading office properties and leading property ownership group,” said Rosenberg. “The fully leased properties are ideally located in Midtown Manhattan and provide the highest-quality office space in the city.”
The three originating CMBS lenders, Bank of America, Citibank and Wells Fargo, made a 10-year, fixed-rate securitized loan for $1.1 billion covering the 1.1-million-square-foot 1133 Avenue of the Americas (“1133”), and the 600,000-square-foot 114 West 47th Street, (“114”). The new securitized loan refinanced a loan held by TIAA with a principal balance of approximately $200 million covering 1133 Avenue of the Americas.
Simultaneously with the closing of the new CMBS loan, a Citibank-led Facility, previously provided to The Durst Organization LP, (“DOLP”), in the amount of $1 billion, was re-financed at $400 million, consisting of a $300 million mortgage loan covering three Durst-owned office buildings on the East Side of Manhattan and a $100 million revolving loan covering interests in two other Durst properties; the two Durst buildings now mortgaged under the CMBS financing, (1133 and 114), and another Durst building at 825 Third Avenue, currently under substantial renovation subsequent to the termination in 2019 of a 25-year net lease, were all released from the prior Citi / DOLP Facility.