In an earnings call announced on Wednesday, Boston Properties stated the firm has refinanced the GM Building with a $2.3 billion mortgage from a group of unidentified lenders. The 10-year loan, which carries a 3.43 percent fixed interest rate, replaces a $1.6 billion package of senior and mezzanine financing with a 6 percent interest rate that expires in October. Boston Properties’ CFO Michael LaBelle said he expects the new loan to close in June and that it will save the company $9 million in interest payments per year. Located at 767 Fifth Avenue, Boston Properties acquired the nearly 50 year old office tower in 2008 for $2.8 billion. The building has 1,774,000 net leasable square feet and sits on the site of the former Savoy-Plaza Hotel. The property’s anchor tenant, Estee Lauder, has a 300,000-square-foot lease expiring in 2020.
