New York REIT, Inc. has managed to secure a $325 million loan on 1440 Broadway, two years after buying the tower for $528.6 million.
Amidst a series of announcements on strategy and board changes, it was announced that an affiliate of H/2 Capital has provided $285 million in senior financing while a fund led by Paramount Group fund has provided $40 million of mezzanine debt against the 755,679 s/f office property.
“Completing this financing is another accomplishment in our strategic initiatives plan,” said Michael Happel, Chief Executive Officer of NYRT.
“We remain focused on building a best-in-class Manhattan real estate portfolio for the benefit of all of our shareholders, and we will continue to capitalize on opportunities, including those that benefit our capital structure and liquidity, while executing our strategic initiatives.”
Following criticism by investors, on Oct. 1, NYRT announced a series of governance, strategic and operational actions intended to enhance value for all shareholders and narrow the gap between net asset value (NAV) and the company’s current common share price.
Among the announced actions were the appointment of Apollo Global Management co-founder Marc Rowan to the Board of Directors as well as plans to appoint two new independent directors in the near future.
The Company also announced it has engaged an advisor to identify and consider potential strategic transactions at the asset or entity level. NYRT is also selling non-core, outer-borough assets and is in the process of implementing a joint venture with American Realty Capital New York City REIT, Inc.
According to Real Estate Direct, the new loan, which matures in 2019, allowed New York REIT to leverage the property, which had been unencumbered since last December, when a $204.3 million CMBS loan was paid off.