Brookfield Seeks $1.4 Billion Refinancing Loan for Midtown Manhattan Tower

Brookfield Properties is in the middle of seeking a $1.4 billion refinancing package for a midtown Manhattan office tower on Fifth Avenue that’s undergoing a $400 million redevelopment.

The large planned refinancing comes as the commercial real industry contemplates a slowdown stemming from high interest rates and economic conditions that analysts and executives say could lead to a recession.

Brookfield, a division of Canadian investment giant Brookfield Asset Management, is expected to close the refinancing loan 660 Fifth Ave. “Soon,” a person familiar with the situation told CoStar News, without giving more specifics. Brookfield declined to comment.

The real estate owner is renovating the 39-story office building spanning 1.25 million square feet “from the inside out,” according to the property website. The overhaul, announced before the pandemic, includes new infrastructure and building systems, lobby and “oversized” tenant terraces. Brookfield bought the office property, between 52nd and 53rd streets, in 2018.

The new building facade will be reclad in 11-by-19-foot single-pane glass units, tripling the amount of window space in the building, and are the largest windows ever used on a commercial high-rise, Brookfield has said. The renovation is expected to be completed this year. Commercial Mortgage Alert first reported the refinancing.

Australian financial services firm Macquarie in May signed a 221,764-square-foot lease over six floors to be the anchor office tenant at the building, which opened in 1957, Brookfield said in May. Macquarie will also have a private lobby entrance on both the first and second floors, and 30,000 square feet of private outdoor terraces. Macquarie is using the space for its Americas regional headquarters with occupancy expected in late 2024.

New York’s office utilization rate is lingering at about 40%, Kastle Systems’ weekly keycard swipe data shows.

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