Moinian Group has sealed a $595 million refinance of 3 Columbus Circle with J.P. Morgan and Deutsche Bank, sources familiar with the transaction told Commercial Observer. The 10-year loan will carry a 3.91 percent interest rate.
Moinian will use the funds to buy out Young & Rubicam, which owns a six-story office condominium at the property, giving Moinian full ownership of the 26-story tower, according to documents filed on the Tel Aviv Stock Exchange (TASE).
Moinian will pay $266 million for Y&Rs’s 214,372-square-foot office condominium. The marketing firm paid $143.6 million for it in 2012 and is the anchor tenant at the remaining office condo at the 618,403-square-foot property, which Moinian owns.
The deal has been in the works for some time, with sources first telling CO of the refinance in December 2018. A $300 million loan was initially planned; the amount was upped to include the Y&R buyout.
Until 2018, Moinian owned its office condo together with SL Green Realty Corp., but last year, Moinian paid $233 million to buy out SL Green’s 48.9 percent stake.
The Columbus Circle tower was valued at $1 billion as of December 2018, per the TASE report.
Moinian has already leased the six-story office condominium to an undisclosed tenant, at a rate of $76 per square foot over a 15-year term, per the report. Y&R occupies 44 percent of the property, a total of roughly 373,766 square feet across 11 full floors, as Commercial Observer previously reported.
Moinian had bought the building in 2004 for $250 million.
SL Green acquired its 48.9 percent ownership in the building from Moinian in 2011 for around $500 million.
Situated on a full city block, the 25-story, 310-foot-tall asset was originally built in 1923 as a three-story building called the Colonnade Building. Developers erected a tower on top of the initial three stories four years later.
Officials at Moinian declined to comment. Officials at J.P. Morgan and Deutsche Bank did not immediately respond to a request for comment.
With additional reporting by Mack Burke.
Updated to include information about the Y&R acquisition.
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