- Manhattan real estate borrowers secured over $4B in loans in August, underscoring lender demand for prime office and multifamily assets.
- The Durst Organization landed the largest deal: a $1.3B refinancing for its Times Square office tower, 151 West 42nd Street.
- Other major loans include a $900M refi for Paramount Group’s Sixth Avenue tower and $785M in acquisition financing for RXR’s Madison Avenue buy.
- Lenders also backed residential deals, including a $675M loan for a redevelopment project on Fifth Avenue and a $525M refi for a luxury Murray Hill multifamily asset.
Manhattan’s Debt Market Powers Through August
While Manhattan’s sales market has seen ups and downs, its debt market showed resilience in August, reports The Real Deal. Landlords locked in more than $4B in financing, with a trio of massive office deals leading the charge. The month’s biggest loans show that, despite headwinds, prime office properties and well-located multifamily assets continue to attract significant capital.
Top Five Loans
The Durst Organization led August’s financing activity with a $1.3B CMBS loan for its Times Square tower at 151 West 42nd Street, anchored by TikTok and 92% leased. Paramount Group followed with a $900M refinance for its 45-story office tower at 1301 Sixth Avenue, completed just before its acquisition by Rithm Capital. RXR secured $785M from Apollo Global to acquire 590 Madison Avenue for $1.08B, in partnership with Elliott and Baupost. On the residential side, Miki Naftali landed a $675 million loan from JPMorgan to acquire and redevelop the 208-unit 800 Fifth Avenue. GO Residential REIT received a $525M refinancing from Arbor Realty for the Copper Apartments, a pair of luxury towers in Murray Hill. The financing replaces a previous CMBS loan and supports the REIT’s newly launched $2.7B multifamily portfolio.
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Why It Matters
These financings signal a vote of confidence in Manhattan real estate—especially for Class A office and luxury multifamily assets. Lenders are showing renewed interest in trophy properties with high occupancy and strong tenant rosters. This comes even as the broader market continues to grapple with elevated interest rates and slower leasing velocity.
What’s Next
Interest rates are beginning to stabilize. Institutional buyers are starting to return to the market. As a result, Manhattan could see more large-scale debt deals in Q4. Key areas to watch include upcoming loan maturities. REIT repositionings will also draw attention. Additionally, new development starts are expected—particularly in the luxury residential and high-end office sectors.
