Real estate investment firm RFR Holding LLC has closed $100 million in financing for 345 Park Ave. South in Manhattan. The office floors are 100% occupied by Digitas, a digital marketing firm, which has leased its space through November 2021.
Through this 10-year commercial mortgage-backed securities (CMBS) transaction arranged by Citibank, RFR will defease existing debt on the property while taking advantage of low interest rates to reduce its cost of capital going forward.
‘This transaction exemplifies several trends we're seeing in the financing marketplace,’ says Jason Brown, head of acquisitions for RFR. ‘With strong sponsors like RFR, lenders are now willing to extend the term of the financing beyond the terms of existing leases.’