A Midtown office landlord announced this week that it has used bonds from the Tel Aviv Stock Exchange to pay off a $385 million loan on its office building at 452 Fifth Ave., commonly known as the HSBC Tower.
Property & Building Corp., a real estate firm based in Israel, had received the loan from JPMorgan Chase. The banking giant refinanced the deal in 2022 but had been looking to sell the loan since at least July amid pressure from regulators for banks to lower their exposure to office real estate, which is still struggling to fully recover from the pandemic.
A representative for JPMorgan declined to comment on the loan.
The property is currently 99% leased, although its anchor and namesake tenant, HSBC, will officially leave next year. The bank announced in 2022 that it was downsizing and moving its headquarters to Hudson Yards, and it just celebrated the grand opening of its new office in Tishman Speyer’s The Spiral earlier in May. Property & Building Corp. will rebrand the building as 10 Bryant Park.
Office building refinancings have been difficult lately given consistently high interest rates and limited demand for space, and Property & Building Corp. has tried to sell the HSBC Tower at least twice in recent years, although neither deal ended up closing. The firm bought it in 2010 for $330 million, property records show.
But the announcement issued by the brokerage JLL, which heads up leasing at the building, said the Tel Aviv Stock Exchange deal “demonstrates ownership’s faith in 10 Bryant and New York City’s office market as a whole.”
HSBC’s footprint in the 30-story, 865,000-square-foot tower spans more than 350,000 square feet, according to commercial real estate database CoStar. It estimates the property’s asking rents at between $67 and $82 per square foot.
JLL recently signed infrastructure investor Generate Capital to a 32,421-square-foot lease at the building, and asset manager Tilden Park Capital renewed its deal for 16,140 square feet, according to the brokerage.
Eddie Small , 2024-05-31 18:23:35
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