A joint venture between Tishman Speyer and Silverstein Properties has closed on a $330 million refinancing loan for the Salmon Tower Building, a 32-story, 960,000-square-foot office tower located at 11 W. 42nd St. in Midtown Manhattan. The joint venture worked with Newmark to secure the five-year, fixed-rate loan, with Bank of America serving as the largest proportional lender and Taconic Capital serving as a mezzanine lender. The new debt structure will be used, in part, to replace the asset’s extant $300 million loan, and to fund additional costs related to an ongoing lease expansion program.
Dustin Stolly and Jordan Roeschlaub, co-presidents of Newmark’s Debt & Structured Finance arm, led the brokerage team that represented the owners in the transaction. They worked alongside Executive Managing Directors Nick Scribani and Chris Kramer, Issa Abbassi and Holden Witkoff.
New loan, new life
The Salmon Tower Building was built in 1927 and was designed by York & Sawyer at the height of the city’s Art Deco architectural era. In 1978, the building underwent a complete gut renovation, and was acquired by its current owners that same year. The property is LEED-Gold certified, and offers floorplates ranging from 1,200 to 38,000 square feet. It is 99 percent leased to tenants in the banking, capital markets, asset management, education and fashion sectors. The property has 21,500 square feet of ground-floor retail space, according to CommercialEdge information.
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Additionally, Tishman Speyer operates a co-working space within the building, which features hot desks and private conference studios. The firm offers its ZO amenity network at the property, which includes fitness, cultural and networking amenities accessible though an application.
The Salmon Tower Building directly overlooks Bryant Park, and is flanked by many retail, dining, entertainment, cultural and transportation options, including nearby Grand Central Station.
Leases and investments in the Big Apple
The refinancing takes place amid a recent flurry of leasing deals and investments in an otherwise lagging New York City office sector. In late June, Empire State Realty Trust announced two new office leases totaling 400,000 square feet with Skanska and Aprio at the Empire State Building. Earlier that week, SL Green sold half of its take in 245 Park Ave., a 1.8 million-square-foot office tower to Tokyo-based Mori Trust Co.
