Brookfield Properties is close to securing a $1.3 billion refinancing deal for 660 Fifth Avenue, an office tower in Midtown Manhattan that recently underwent significant redevelopment.
According to a Morningstar presale report, Citi Real Estate, Barclays, ING Capital, Bank of America, and Santander Bank will provide a $1.2 billion commercial mortgage-backed securities (CMBS) loan for the property. The lenders will also issue an $89.4 million mezzanine loan. The 39-story building, which covers 1.3 million square feet, has been appraised at nearly $2 billion.
The interest-only CMBS loan comes with a two-year term and three one-year extension options. The funds from the refinancing will be used to pay off existing debt, including a $750 million loan from ING Group and a $300 million mezzanine loan from Apollo Global Management.
Brookfield invested $400 million to redevelop and modernize the building, previously known as 666 Fifth Avenue. Upgrades included installing a new glass facade, renovating the lobby and amenity spaces, updating elevators, and improving infrastructure aimed at reducing the building’s carbon footprint.
The tower reached full occupancy in September after Scotiabank signed a lease for 205,000 square feet. This milestone marks a significant change for the property, which faced controversy less than ten years ago.
Brookfield acquired the 99-year ground lease on the property from Kushner Companies in a deal valued at $1.3 billion. The transaction raised questions about whether Jared Kushner used foreign policy connections to secure financial support for the building; the Qatari government is among Brookfield’s investors.
In May 2022, Macquarie Group became the first tenant to lease space in the renovated tower with a commitment of 250,000 square feet. Other tenants such as 400 Capital, Stephens, and Viking soon followed.
Late last year, Citadel agreed to take up 504,000 square feet at 660 Fifth Avenue—making it not only the largest tenant in the building but also marking one of Manhattan’s largest leases during that period. Citadel is expected to move into its new offices in January.
Brookfield did not respond to requests for comment.
