Brookfield Lands $750M for Lower Manhattan Tower

June 25, 2024

Finance Featured New York NewsMoreNortheast Office

Last year, the company acquired a 49 percent interest in the asset from Blackstone for $1 billion.

The office tower at 165 Broadway in Manhattan. — The owner will implement multiple capital investments at the building. *Image courtesy of CommercialEdge*

Brookfield Properties has obtained $750 million for the refinancing of One Liberty Plaza, a 2.3 million-square-foot office high-rise in Lower Manhattan. Multiple lenders including Morgan Stanley provided the long-term loan.

Previous debt included a $850 million financing package obtained in 2017 and originated by Morgan Stanley Bank, according to CommercialEdge information.

Last year, Brookfield acquired a 49 percent interest in the asset from co-owner Blackstone for $1 billion. The deal marked a $500 million drop from the previous valuation that was conducted in 2017, when Brookfield sold the minority interest to Blackstone.

A LEED Gold-certified high-rise

The 54-story office building came online in 1973 and underwent cosmetic renovations in 1989 and 2002. The high-rise, which is LEED Gold-certified, features floorplates averaging about 45,000 square feet, 20,000 square feet of retail space, a fitness center and multiple event spaces. The owner plans to implement multiple capital investments at the building.

Tenants include Newmark, Cambridge University Press & Assessment, Avon and FAIRCO, CommercialEdge data shows. Occupancy at One Liberty Plaza over the last 20 years averaged 95 percent.

Located at 165 Broadway in the borough’s Financial District, the tower is close to Fulton St. subway station and within walking distance of World Trade Center.

Large refinancing deals are still closing

Despite economic challenges affecting the real estate industry—especially the office sector—and a growing number of loan defaults based on maturity and high-interest rates, large refinancing deals are still in the books.

In April, L&L Holding Co. secured $911 million for 425 Park Ave., a 47-story Manhattan tower. Sumitomo Mitsui Trust Bank provided the five-year, floating-rate loan for the office property.

The same month, a joint venture between SL Green Realty Corp. and Vornado Realty Trust obtained a two-year extension for the $1.1 billion securitized mortgage on 280 Park Ave., also in Manhattan. Partners will have the option to fully extend the maturity date to 2028.