Construction loan to fund repositioning of flagship Midtown East office tower
NEW YORK, NY, June 9, 2022 – Rosenberg & Estis, P.C. recently facilitated a $100 million redevelopment loan, with JPMorgan Chase Bank and Wells Fargo Securities as co-lead arrangers and joint bookrunners, for The Durst Organization’s repositioning of 825 Third Avenue.
The three-year loan will help fund Durst’s recent $150 million overhaul, which added amenities and enhanced every facet of the 40-story office tower, from its lobby to elevators, mechanical systems and windows. Gary M. Rosenberg, Eric S. Orenstein, Dennis I. Hellman and Arielle Frost, Members in the Transactional Department of Rosenberg & Estis, and Casey E. Delaney, an Associate in the department, represented Durst in the transaction.
Located on the eastern blockfront of Third Avenue, between East 50th and 51st streets, 825 Third Avenue is a Midtown East flagship for Durst, which originally constructed the Emery Roth & Sons-designed office tower in 1969. Random House initially leased the 544,000-square-foot building, which later became known as the headquarters of Advance Publications, parent of Condé Nast.
Durst began gut renovating the tower, after the publisher and the building’s subtenants vacated following the expiration of a 25-year ground lease. Among other improvements, Durst modernized the building’s facade and the ground-floor storefronts and added smart windows that tint automatically based on sunlight. Other upgrades include special windows on which presentations can be projected, and white onyx walls and terrazzo marble floors to adorn a new lobby.
The building’s new tenants also will enjoy a 3,000-square-foot ground-floor lounge with coffee, wine and arcade games, the addition of 15,000 square feet of amenities such as a fitness center on the second floor, and a new 12th-floor terrace. Plus, Durst added more efficient heating cooling systems and installed sensors to collect real-time air quality data on carbon dioxide, humidity and other factors.
“Rosenberg & Estis is pleased to have facilitated financing for the repositioning of this premier office tower,” Gary M. Rosenberg said. “It is an ideal home for commercial tenants seeking best-in-class amenities in close proximity to abundant mass transit.”