Soloviev’s Billionaires’ Row refi tops May’s biggest loans

New York City's commercial real estate market saw a surge in high-value financing in May, with the five largest loans totaling more than $3.1 billion. These transactions highlight a diverse range of activity, including trophy office refinancings, large-scale office-to-residential conversions, and industrial logistics developments. The activity suggests that lenders remain willing to back well-located assets and strategic redevelopments despite broader economic headwinds.

The month’s largest transaction was a $1.8 billion CMBS refinancing for the Soloviev Group’s trophy office tower at 9 West 57th Street, originated by Bank of America, Wells Fargo, and Citi Real Estate Funding. The five-year loan carries a 4.97 percent interest rate and values the Billionaires’ Row property at $3.9 billion upon stabilization, providing the landlord with $526 million in net cash. This financing follows a record-breaking lease in the building, where a holding company for billionaire Gonzalo Hevia Baillères signed for 5,000 square feet at $327.50 per square foot.

Significant capital was also directed toward adaptive reuse and industrial sectors, led by a $420 million construction loan from Apollo Global Management for RXR’s conversion of 61 Broadway. This project aims to transform the Financial District office building into 796 residential units, utilizing the 467m tax abatement program to include approximately 200 affordable housing units. In the industrial sector, Strategic Value Partners provided a $379.1 million loan to Dune Real Estate Partners and Turnbridge Equities for the Bronx Logistics Center, a 1.3 million-square-foot Class-A distribution hub.

The remaining top deals focused on Midtown acquisitions and assemblages, including a $268 million bridge loan from Ladder Capital for Sovereign Partners’ $378 million purchase of 575 Fifth Avenue. The 40-story Class A tower is 87 percent occupied and includes both office and retail condominiums. Additionally, JPMorgan Chase provided $246 million to Gary Barnett’s Extell Development for a massive Park Avenue assemblage. Barnett’s $500 million acquisition of 405-417 Park Avenue, combined with nearby parcels like the former Friars Club, creates a development site with the potential for up to 700,000 square feet of rentable office space.