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Brookfield refinances One New York Plaza with $750M Wells Fargo loan

New mortgage replaces $400M financing from Lehman, Goldman

From left: Brookfield's Ric Clark and One New York Plaza
From left: Brookfield's Ric Clark and One New York Plaza

Brookfield Office Properties refinanced its office tower One New York Plaza with a $750 million loan from Wells Fargo, according to public records filed with the city Thursday.

Brookfield took over the 2.59-million-square-foot building at 1 Water Street in 2006, when it bought Peter Munk’s Trizec Properties for $8.9 billion in partnership with the Blackstone Group.

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One New York Plaza’s tenants include investment bank Morgan Stanley, which takes up about 1.2 million square feet, and law firm Fried, Frank, Harris, Shriver & Jacobson.

The new loan is set to replace a $400 million commercial mortgage-backed security (CMBS) loan issued by Lehman Brothers and Goldman Sachs in 2006 to the building’s prior owner, Trizec. After Lehman’s 2008 bankruptcy, the CMBS loan passed to several trustees and was most recently overseen by U.S. Bank, according to public records. The old loan has around $340 million in principal remaining, and Wells Fargo will add a $410 million gap mortgage until its term expires and the new mortgage kicks in.

Wells Fargo, one of the most active commercial real estate lenders in New York, originated last year’s largest single-asset loan: a $2.7 billion Fannie Mae loan funding Blackstone and Ivanhoe Cambridge’s acquisition of Stuyvesant Town-Peter Cooper Village.

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