Rosenberg & Estis, P.C. has represented The Durst Organization as legal counsel in a $1 billion financing package from multiple lenders on a group of eight Class A office towers. The instruments provide $600 million in first mortgage debt on five Manhattan Durst properties and a $400 million credit line. Funding was provided by Citi Private Bank, which contributed $650 million to the deal along with $100 million each from JPMorgan Chase, TD Bank, and Bank of New York Mellon. City National Bank contributed $50 million. The five mortgaged properties are 655 Third Avenue, 675 Third Avenue, 825 Third Avenue, 114 West 47th Streetand 205 East 42nd Street. Rosenberg & Estis Member Dennis I. Hellman represented The Durst Organization in the financing deal.
āThe creative structure of this deal enabled The Durst Organization, a family owned real estate company, to refinance $600 million in existing debt into a more efficient first mortgage debt,ā said Hellman. āDurst will be able to draw on the $400 million credit line to consummate acquisitions very quickly and possibly take advantage of the distress of over-leveraged real estate owners. While it is customary for privately-owned real estate companies to separately finance each property, combining the applicable properties into this financing package enabled Durst to both save time and obtain terms that are more borrower favorable”.
