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Old Posted Apr 1, 2010, 10:45 AM
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Owners seek refinancing of BofA tower…again
Move seen as sign of further improvement in credit market and in the city's real estate market in general;
The Durst Organization and Bank of America see better terms now.

By Theresa Agovino
March 31, 2010

A mere nine months after refinancing the Bank of America Tower at One Bryant Park, the owners are looking to do it all over again in what is being viewed as a sign of strength in the capital markets.

“This is evidence that the financing situation is improving,” said Dan Fasulo, managing director of Real Capital Analytics.

The building's owners, The Durst Organization and Bank of America Corp., refinanced the 51-story, 2.1 million-square-foot tower in June with a $1.28 billion loan. It was believed to be one of the biggest, if not the biggest, single, private financing deals since the credit markets froze shut in 2007.

But sources say the owners believe they can get even better terms now then they could nine months ago. Additionally, the loan they secured was only for three years, and they are hoping to get an even longer one now.

Co-owner Bank of America put up roughly 50% of the re-financing, and it is the anchor tenant in the tower which boasts an occupancy rate of 98%. Additionally, the Durst Organization is a well-financed and sustains an excellent reputation. Many of the buildings seeking funding are plagued by significant vacancies and highly leveraged owners.
NEW YORK. World's capital.

“Office buildings are our factories – whether for tech, creative or traditional industries we must continue to grow our modern factories to create new jobs,” said United States Senator Chuck Schumer.
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