RFR Lands $1.1B Refi for Manhattan Tower

The Seagram Building came online in 1958 and underwent renovations in 2013. Image courtesy of CommercialEdge

RFR Realty has received $1.1 billion for the Seagram Building in Midtown Manhattan, as first reported by the Commercial Observer. The refinancing deal included between $350 million and $360 million in equity from JVP Management, which also acted as the mezzanine lender. Eastdil Secured represented RFR in the transaction.

The current recapitalization replaces the previous $1.1 billion debt received in 2013. The financing package included a $783 million senior commercial mortgage-backed securities loan, which had a maturity date set for 2024, together with $217 million in mezzanine loans and $100 million in preferred equity, according to The Real Deal.

RFR acquired the property in 2000, when the company purchased a majority stake for $375 million, CommercialEdge data shows. In the following years, RFR bought additional shares in the asset, gaining full ownership in 2013, when it closed on a remaining 14 percent stake.

A mid-century high-rise

The Seagram Building came online in 1958 and underwent cosmetic renovations in 2013. Architects Ludwig Mies van der Rohe and Philip Johnson designed the tower at 375 Park Ave. The 38-story, Class A high-rise encompasses 891,998 square feet. The building has 17 passenger elevators, floorplates between 15,000 and 32,000 square feet, 27,000 square feet of retail space and 150 car parking spots.

Among its range of amenities, the property features a conference center, a terrace lounge, a fitness center, a playground and restaurants. The building’s tenant roster includes Fiera Capital, Centerbridge Partners, Blue Owl Capital and Investindustrial, among others. Earlier this year, sovereign wealth fund Temasek International signed a 26,062-square-foot lease renewal and expansion at the property. At that time, the building was 95 percent leased.

As of October, Manhattan’s vacancy rate stood at 17.4 percent, marking a 280-basis-point increase on an annual basis. However, the value was lower than the national rate, which clocked in at 17.8 percent, a recent CommercialEdge report shows.