Landmark Manhattan Office Tower Lands $229M Refi
The building underwent a major redevelopment in 2022.
A joint venture of PGIM, Tribeca Investment Group and Meadow Partners has received $228.9 million to refinance 295 Fifth Ave., a 19-story office tower in Manhattan’s Midtown South submarket.
Rialto Capital Management LLC and Hines provided the funding, consisting of a floating-rate, interest-only bridge loan. Walker & Dunlop’s Capital Markets Institutional Advisory team arranged the financing.
Also known as the Textile Building, the asset was completed in 1920 and long served as a hub of New York City’s textile industry. The refinancing follows a 2022 comprehensive redevelopment of 295 Fifth Ave. into a 707,181-square-foot Class A office tower.
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The building’s tenants include Bridgewater Associates, the world’s largest hedge fund, and Quinn Emanuel, a litigation firm. In April, AI firm Agentio signed a 20,000-square-foot lease at the property.
The Walker & Dunlop team that arranged the financing consisted of Senior Managing Directors Dustin Stolly, Aaron Appel, Jonathan Schwartz, Keith Kurland and Adam Schwartz, along with Managing Directors Sean Reimer and Michael Brown, plus Director Christopher de Raet and Capital Markets Analyst Jack Krentzman.
The building occupies a full city block on Fifth Avenue between 30th and 31st streets. It’s within a 10-minute walk of both Grand Central Terminal and Penn Station, providing access to 16 subway lines, the Long Island Railroad, Metro-North Railroad, Amtrak and NJ Transit.
Manhattan office market continues to shine
The outlook for the Manhattan office market includes an ongoing decline in vacancy, as strong leasing demand outpaces space under development, according to a June Yardi Matrix report.
The city boasted the second-lowest vacancy rate in the country as of April, recording a figure of 13.1 percent. Only Miami had a lower vacancy rate, with 12.5 percent.
Asking rents averaged $69.29 per square foot in the borough in April—more than double the $32.91 per square foot national average and the highest in the country. Transaction activity also remained strong, with $3 billion in office sales recorded through April, the most in the country.
Another major Manhattan refinancing came earlier in July, when Vanbarton Group obtained a $352 million loan to refinance 425 Lexington Ave., a 750,000-square-foot office tower in Midtown. Goldman Sachs provided the floating-rate, single-asset single-borrower note using funds and accounts managed by BlackRock.
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