July 5, 2017
The new owners of 85 Broad St. in Manhattan’s Financial District refinanced with a loan from the first-ever issuance of $72 million in “green” commercial mortgaged-backed securities (CMBS).
The idea is that bond investors may pay higher prices for bonds backed by commercial mortgages to super-efficient, green buildings, which would lead to lower interest rates. The new loan will pay down a piece of the owners’ $358 million in acquisition financing.
The green CMBS received very strong interest from the major green investors both in the U.S. and overseas and was oversubscribed, according to Natixis, which provided both loans.
“This financing is a great example of how like-minded global players are able to work together to bring new green initiatives to the market,” said Nathalie Palladitcheff, executive vice president and chief financial officer at Ivanhoé Cambridge, which bought the tower earlier this year with its partner Callahan Capital Properties.
Built in 1983, the 1.1-million-square-foot office tower earned a Leadership in Energy of Environmental Design (LEED) certification in 2017.
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