Olayan America has closed a $570 million loan to refinance the Sony Building.
ING Capital led the refinancing as administrative agent. Other lenders for the trophy property were Bank of East Asia New York Branch, Credit Agricole Corporate and Investment Bank, Société Générale, and Natixis a Estate Capital LLC as co-lead arrangers and co-lead bookrunners.
The loan is secured by a first mortgage on the iconic skyscraper at 550 Madison Avenue. The 37-story building in the Plaza District has 852,830 s/f of rentable mixed-use space.
The building features approximately 776,000 s/f of office space, prime retail frontage on Madison Avenue, and exhibition and museum space.
Olayan America, the US investment arm of The Olayan Group, paid $1.3 billion to buy the tower from the Chetrit Group and Clipper Equity earlier this year.
The Saudi company secured a $570 million bridge loan from ING to close the deal.
“ING is pleased to have earlier this year been the sole lender on the bridge loan for the acquisition of the property and, together with our co-lenders, is now further committed to financing the asset’s repositioning,” said Craig Bender, Managing Director and Head of US Real Estate Finance at ING. “We are proud to have led this financing for one of our longstanding global clients and look forward to seeing how Olayan and Chelsfield maximize the property’s value.”
Olayan and asset manager Chelsfield intend to rebrand the property and create value by renovating and reconfiguring the existing space.
“The lending group has provided us with financing that gives us the time and flexibility we need to maximize the building’s value,” said Nadim Tabbara, Chief Financial Officer of The Olayan Group.
Construction of the Sony Building was completed in 1984 as the global headquarters of AT&T. It has been sold on just two previous occasions – to Sony Corporation in 2002 and in 2013 to the Chetrit Group.