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Debt & Equity

Goldman double dips with $650M loan for 590 Madison

Goldman Sachs has recommitted to 590 Madison Avenue with a jumbo $650 million loan for owners, The State Teachers Retirement System of Ohio.

A Cushman & Wakefield Equity, Debt and Structured Finance team led by Steve Kohn and Alex Hernandez acted as exclusive advisors to STRS Ohio in the deal.

It is the second time Kohn and Hernandez have arranged a lofty financing deal for the former IBM building.

590 Madison Avenue
590 Madison Avenue

In 2007, the pair — then with Sonnenblick Goldman — arranged a $350 million first mortgage loan on behalf STRS Ohio for 590 Madison Avenue, again from Goldman.

At the time, Kohn told Real Estate Weekly, “At less than 30 percent loan-to-value for one of the premier office buildings in the country and a major state pension fund borrower, it is difficult to imagine a more secure loan.”

In the interim, the pension fund mulled a possible sale of the 42-story trophy office building that contains more than one million square feet of rentable space.

In refinancing, it will use the new 10-year loan to retire the previous $350 million mortgage two years early to take advantage of historically low interest rates.

590 Madison has 39 floors of office space and retail on the ground floor, lower level and mezzanine level. It also has a private 78-car parking garage. Tenants include IBM, Crowell & Moring, Aspen Insurance, Morgan Stanley Smith Barney, Bonhams and Tourneau.

“This is one of the truly premier office buildings in Manhattan, located among the most prestigious commercial properties, hotels and retailers,” said Kohn, now president of Cushman & Wakefield Equity, Debt & Structured Finance.

STEVE KOHN
STEVE KOHN

Hernandez, a Cushman & Wakefield managing mirector added, “The lending community greatly appreciated the excellent credit quality of this offering. Both the property fundamentals and institutional sponsorship are unmatched.”

Cushman’s Chris Moyer and Alex Lapidus also worked on the deal representing an affiliate of STRS Ohio.

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