The Bromley Cos. Refinances Manhattan Asset

The Bromley Cos. has obtained $15.5 million for the refinancing of a 70,000-square-foot office building in Manhattan. Apple Bank provided the 10-year loan in a transaction arranged by Avison Young.

The note retires a $12 million loan originated by TD Bank in 2013, according to CommercialEdge information. Bromley had acquired the asset the year before from a private owner for $29.4 million.

The Avison Young team which brokered the refinancing comprised Principal & Co-Lead Scott Singer, Senior Director Jeffrey Moroch and Associate Director Dina Wetchler.

A fully leased office building

Fully leased for nearly 20 years, the 1906-built property went through a $6 million renovation in 2010 that included new elevators, HVAC systems, roof, windows and an upgraded lobby. The 11-story building also features some 5,600 square feet of retail space. Current tenants include Delos Capital, SJ Associates and Factory 360.

The Class B facility is at 120 Fifth Ave. within the Flatiron/Union Square neighborhood, less than 1 mile from the Empire State Building and some 16 miles from John F. Kennedy International Airport. The building is also 2 miles from 1345 Ave. of the Americas, where a law firm signed the biggest office lease of 2023.

Also last year, Bromley signed a 150,000-square-foot lease with Microsoft at 122 Fifth Ave. The 11-story building is adjacent to 120 Fifth Ave.

Manhattan’s maturing office loans

Manhattan has some $19.8 billion in loans maturing by the end of the year, according to a CommercialEdge market bulletin. The amount is almost double than the one recorded by the runner-up Los Angeles ($10.3 billion).

Notable office loans of last year include RFR Realty’s $1.1 billion refinancing of the Seagram Building, a 38-story high-rise totaling nearly 892,000 square feet. Proceeds replaced the previous $1.1 billion debt received in 2013.

A few months earlier, Tishman Speyer and Silverstein Properties recapitalized the Salmon Tower Building with $330 million from Bank of America and Taconic Capital. The new debt structure was used, in part, to replace the asset’s extant $300 million loan, and to fund additional costs related to an ongoing lease expansion program.