After a series of delays and a lender swap, Harry Macklowe has closed on construction financing for One Wall Street.
Deutsche Bank provided Macklowe Properties with $750 million in construction debt for the office-to-residential conversion, sources told The Real Deal. In partnership with Qatari billionaire and former prime minister Sheikh Hamad Bin Jassim Bin Jaber al-Thani (HBJ), the developer is planning 566 condos with retail at the base.
The construction loan carries a five-year term with a rate in the 5 percent range. It replaces a $460 million loan that Deutsche Bank issued on behalf of Qatar National Bank at the time of Macklowe’s acquisition. The developer paid $585 million to buy the site in 2014, property records show.
JLL’s Aaron Appel and Kellogg Gaines arranged the new debt.
Macklowe had been negotiating with JPMorgan Chase for a $850 million loan for roughly a year, before switching to Deutsche Bank in May. At the time, sources told TRD that Deutsche Bank offered the developer a $750 million loan at a lower interest rate. As a part of the new deal, sources said HBJ provided an additional $100 million in equity, bringing the development’s total equity commitment to nearly $1 billion.
Representatives for Macklowe, Deutsche Bank and JLL were not immediately available for comment.
In May, TRD reported that Target was in talks with Macklowe Properties to take 35,000 square feet of retail space at the base of One Wall Street. In the same month, Macklowe said he was targeting buyers in Asia before launching sales in the United States.
CORE is leading marketing efforts on the residential portion, and Macklowe has said that he’s aiming for between $2,000 and $2,500 a square foot on the lower floors.