The Hudson Bay Company has closed on a $400 million refinancing on the companies Lord & Taylor flagship property in New York City. Located at 424-438 Fifth Avenue, the new instrument will refinance the existing mortgage of $250 million with the rest of the proceeds used to pay down the company’s revolving credit facility. The loan will mature in August 2021 and has an average interest rate fixed at around 4.3 percent. An appraisal valued the property at $655 million based on the assumption that the property is net leased by Lord & Taylor at an estimated current fair market rent.
The Hudson Bay Company was founded in 1670 and its brands now include Lord & Taylor, Saks Fifth Avenue, Gilt, and Saks OFF 5TH, along with Find @ Lord & Taylor and Home Outfitters. In Europe, its brands include GALERIA Kaufhof, the largest department store group in Germany, Belgium’s only department store group Galeria INNO, as well as Sportarena. Hudson Bay has more than 460 stores and 66,000 employees around the world.
”We continue to leverage our significant real estate portfolio, said Richard Baker, HBC’s Governor and Executive Chairman. “HBC’s two wholly owned flagship properties on 5th Avenue in New York City, which have been valued at a combined $4.36 billion based on independent appraisals, continue to provide the company access to secure long term debt at attractive rates. This debt is non-recourse to the operating company and provides HBC with an efficient capital structure from which to continue its global retailing growth initiatives.”
