The Durst Organization this week closed on a $1 billion credit line that will help finance its major development projects.
The credit facility structures the financing of eight Durst office towers and results in a $400 million line of credit for capital improvement and acquisitions. The facility has a three-year term with options to extend.
The Citi Private Bank acted as agent on the deal with participation from JPMorgan Chase, The Bank of New York Mellon, TD Bank and City National Bank. The Citi Private Bank lent $650 million, with JPMorgan Chase, Bank of New York Mellon and TD Bank lending $100 million and City National Bank lending $50 million.
“We are very grateful to Citi and the entire bank group for their partnership on this deal in support of our development projects. Our relationship with the Citi Private Bank spans over a decade and we look forward to closing many more deals with them and all of our partners,” said Jonathan (Jody) Durst, president of The Durst Organization.
The developer has filed plans to build a one million square foot mixed use property at the former Clocktower site in Long Island City and is also part of the Hallets Point development on the Queens waterfront.
Rosenberg & Estis, served as legal counsel for The Durst Organization in the financing package. The five properties supporting the first mortgage debt are 655 Third Avenue, 675 Third Avenue, 825 Third Avenue, 114 West 47th Street and 205 East 42nd Street.
Rosenberg & Estis member Dennis I. Hellman with Kamilla Bogdanov and Daniel Grobman represented Durst. Chatham Financial also advised on the deal while Herrick Feinstein represented Citi Private Bank.
“The creative structure of this deal enabled The Durst Organization to refinance $600 million in existing debt into a more efficient first mortgage debt,” said Hellman.
“While it is customary for privately-owned real estate companies to separately finance each property, combining the applicable properties into this financing package enabled Durst to both save time and obtain terms that are more borrower-favorable.”