Seagram Building Refinancing Secures $1.2 Billion Commercial Mortgage-Backed Security
Real estate investment firm RFR Holding is nearing the completion of a $1.2 billion commercial mortgage-backed security (CMBS) to refinance debt on the Seagram Building, a prominent 38-story tower in Midtown Manhattan.
Rated AAA by both Kroll Bond Rating Agency and Fitch Ratings, the CMBS is being issued in seven tranches to potential investors. Pricing is anticipated to be finalized within the coming week.
The transaction follows a trend of bond investors investing in notable New York City office properties. Recent examples include the $3.4 billion CMBS refinancing of Rockefeller Center and the $2.7 billion CMBS refinancing of the Spiral office tower.
Proceeds from the CMBS will be utilized to repay existing debt on the Seagram Building, including a mezzanine loan from JVP Management.
The Seagram Building, designed by architect Ludwig Mies van der Rohe, was initially constructed in 1958 as the headquarters of Joseph E. Seagram & Sons distillery company. As per a January property appraisal by Newmark, the building is currently valued at $1.825 billion.
Blue Owl, Centerbridge Partners, TIAA of America, Advent International, and Arbor Realty Trust are the top five tenants, collectively occupying more than half of the building's square footage.
Eastdil Secured is advising RFR on the refinancing. Representatives from RFR, JVP, and lead bank Morgan Stanley have declined to comment.