Ivanhoé Cambridge Lands $1.1B Refi At Midtown Office Tower

Ivanhoé Cambridge landed a $1.13 billion refi for its trophy office tower, 3 Bryant Park.

Wells Fargo, Bank of America and Bank of Montreal provided the CMBS loan for the 1.2-million-square-foot tower at 1095 Sixth Avenue — located between West 41st and 42nd streets, according to a press release from JLL. The loan replaces a CMBS loan of the same amount.

A JLL capital markets team including Christopher Peck and Drew Isaacson represented both Ivanhoé Cambridge and Hines, the asset and property manager, in the deal.

The fresh financing is an encouraging sign for the Canadian investor, which has almost $5 billion worth of loans set to mature in the next year. It is the real estate arm of Quebec’s $300 billion pension fund and tore through U.S. cities over the past decade, paying top dollar to buy top-tier properties.

In New York, it paid $2.2 billion in 2015 to buy the Bryant Park tower — also known as the Salesforce Tower — at the time the second most-expensive office purchase ever in the U.S. The amenity-filled Class A tower is 97 percent leased and major tenants include Salesforce, financial services firm Stifel and law firm Dechert.

Ivanhoé Cambridge also acquired the News Corp.-anchored 1211 Sixth Avenue for $1.8 billion and recently sold a minority stake to RXR. In 2015, it teamed up with the Blackstone Group to buy Stuyvesant Town and Peter Cooper Village for $5.3 billion.

During that decade, the investor also scooped up Goldman Sachs’ former headquarters at 85 Broad Street in the Financial District, which the company bought for $650 million in 2017. Ivanhoé Cambridge was reportedly in talks two years ago to convert the building into rentals, but it appears nothing was ever finalized. The tower’s $359 million loan matures in June 2027.

The company also holds a 49.9 percent stake in 1411 Broadway, which it acquired in 2012 for more than $360 million. Ivanhoé and its partner on the building, the Swig Company, refinanced the building in 2020 with a $450 million loan from Bank of China. It’s not clear when the loan matures.

Now, a big question is whether the firm can refinance the full amounts of its other loans when they come due. The $1 billion loan on 1211 Sixth Avenue building comes due in August, and the $2.7 billion Stuy Town debt matures five months later.