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Soloviev Group Lines Up $1.8 Billion CMBS Refinance for 9 West 57th Street

The deal signals lenders still back top-tier Midtown offices in a higher-rate market.

Overview

  • Soloviev Group said Thursday it arranged a $1.8 billion, five-year CMBS refinance for 9 West 57th Street led by Bank of America with Wells Fargo and Citi.
  • S&P Global says the financing will retire a $1.2 billion mortgage due this year with closing expected May 27.
  • About $526 million of proceeds will go back to owner Stefan Soloviev after $40 million in closing costs and $34 million in landlord obligations, according to S&P Global.
  • The company reports an effective 4.97% interest rate after hedging, while S&P estimates the new debt near 5%.
  • Occupancy has climbed to about 92% after $53 million in upgrades, and recent leasing includes a 10-year deal the firm says averages $340 per square foot.