Brookfield Refinancing Hits $1.25B at Hudson Yards

Brookfield is finalizing a $1.25B refinancing for Five Manhattan West, a 1.7M SF office building at its Manhattan West development.
The loan package includes a $985M fixed-rate mortgage led by Citi, BMO, Deutsche Bank, JPMorgan, and Société Générale.
JPMorgan Chase and Amazon occupy nearly half the tower, which is fully leased to 16 office and retail tenants.

Key Takeaways

A Major Refinancing Move

Brookfield is preparing a $1.25B refinancing for Five Manhattan West, its 16-story, 1.7M SF tower at 450 W. 33rd St, reports Bisnow. The property sits inside the larger Manhattan West project between Hudson Yards and Penn Station. The new financing will replace existing debt and cover future tenant and leasing costs.

Deal Structure

Kroll Bond Rating Agency reports that the financing includes a $985M, five-year fixed-rate mortgage. Citi Real Estate Funding, Bank of Montreal, Deutsche Bank, JPMorgan Chase, and Société Générale are leading the package. The debt splits into $320M of senior A notes and $665M of junior B notes. Another $265M is expected through future CMBS transactions.

Brookfield will also add $9.4M in equity. The firm has committed up to $123M for tenant improvements and leasing expenses. The package will retire $1.23B of balance sheet debt, replenish reserves, and cover closing costs.

The Property and Its Tenants

Brookfield bought the property in 2011 and spent $350M on renovations completed in 2017. Today, the building is fully leased to 16 office and retail tenants. JPMorgan Chase and Amazon occupy nearly half the space, giving the tower strong credit backing.

Amazon signed a 112K SF sublease in early 2025 that runs through October 2032. The company pays $89.11 per SF, below the appraised market rent of $110 per SF. The lease allows three five-year extensions and one termination option. To exercise that option, Amazon must act before December 2028, give two years’ notice, and pay about $300 per SF.

Broader Market Context

The refinancing highlights the renewed demand for CMBS financing tied to prime Manhattan assets. SL Green and Prudential are also refinancing a $1.4B mortgage at 11 Madison Ave. Both transactions use single-asset, single-borrower structures. Colliers notes that these deals made up nearly 75% of the $59B in CMBS issuance during the first half of 2025.

The timing aligns with expectations that the Federal Reserve will cut its benchmark interest rate this week. A rate reduction could trigger more office refinancings and investment activity during the final months of the year.