GFP Real Estate has successfully closed on an $86.5 million refinancing for 515 Madison Avenue, a prominent 42-story office building in Manhattan’s Plaza District. This significant financial move replaces a previous mortgage and consolidates GFP’s ownership of the historic DuMont Building to 100%.
Key Takeaways
- GFP Real Estate finalized an $86.5 million loan for 515 Madison Avenue.
- The new financing is a 10-year, floating-rate permanent loan.
- GFP now holds 100% ownership of the building after acquiring a minority interest.
Refinancing Details
The new 10-year, floating-rate permanent loan from Apple Bank totals $86,500,000. This replaces an earlier $120 million mortgage secured in 2012, which had been reduced to $81 million. The transaction also saw GFP Real Estate acquire the minority interest in the DuMont Building previously held by ATCO Properties, thereby achieving full ownership.
Strategic Ownership Consolidation
In addition to securing the refinancing, GFP Real Estate’s acquisition of ATCO Properties’ stake marks a significant step in consolidating their ownership of the 350,000-square-foot Class A office building. This move underscores GFP’s long-term commitment to the property.
Expert Representation and Management
Newmark’s senior managing director, Paul Talbot, represented GFP Real Estate in the loan acquisition. Furthermore, Iron Hound Management played a role in negotiating the extension of the initial loan in 2023 on behalf of GFP. Jeffrey Gural, chairman of GFP Real Estate, emphasized the importance of disciplined ownership and the enduring strength of well-located assets, highlighting the successful refinancing as a testament to these principles.