ING Capital LLC ("ING") has originated a $570 million senior secured bridge loan for Olayan America, the US investment arm of The Olayan Group, to purchase 550 Madison Avenue in Manhattan.
The short-term loan is secured by a first mortgage on the property, an iconic skyscraper known most recently as the Sony Building.
"ING committed the bridge facility very quickly at attractive terms so that this deal could conclude within a very tight time frame," said Nadim Tabbara, Chief Financial Officer of The Olayan Group.
The 37-story building in the Plaza District of Manhattan has 852,830 square feet of rentable mixed-use space. The building features approximately 776,000 square feet of office space, prime retail frontage on Madison Avenue, and exhibition and museum space.
The property is currently occupied by one restaurant tenant holding 5,000 square feet. It is effectively 100 percent vacant, providing Olayan and asset manager Chelsfield an opportunity to rebrand the building and create value by renovating and reconfiguring the existing space.
"The Sony Building is a New York City landmark," said Craig Bender, Managing Director with ING. "We are especially proud to have worked on this deal for one of our longstanding global clients. Our long-term real estate investment outlook is strong, and we look forward to seeing how Olayan and Chelsfield reposition this property in the future."
Construction of the 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, the immediate past owner.
"The property has been maintained to a high standard and has never previously been available to the open market for office leasing," said Tony Fusco, head of Real Estate at Olayan America.
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