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Moinian gets US$595m loan to take back 3 Columbus Circle
[NEW YORK] New York developer Moinian Group closed on a US$595 million loan to refinance 3 Columbus Circle, the Manhattan office tower formerly known as the Newsweek Building.
The loan from JPMorgan Chase & Co and Deutsche Bank AG follows Moinian's purchase of a stake in the building owned by SL Green Realty Corp. Together, they give the firm run by Joseph Moinian full control of the property, according to a statement Wednesday.
In 2011, Moinian brought in SL Green as a partner on 3 Columbus Circle, rescuing the tower from a potential foreclosure. The firm renovated the 26-story building the following year with a new facade, lobby, elevator system and digital billboard. SL Green said in August that it agreed to sell its 48.9 per cent stake back to Moinian for about US$223 million.
The 63,000-square-meter tower, just south of Central Park on the west side, is anchored by marketing agency VMLY&R and is fully leased. Moinian's firm has its headquarters in the building.
The latest financing is a CMBS loan, meaning it's bundled into securities and sold to investors. It replaces a US$350 million loan and includes 10 years of interest-only payments at a 3.9 per cent rate. Moinian used excess proceeds from the loan and additional cash equity to buy out VMLY&R's office condo to regain full ownership of the property.