JLL’s Capital Markets group announced that it had arranged a $1.125 billion refinancing for 3 Bryant Park, a 1.2 million-square-foot trophy office tower located in the Bryant Park micro-market of Midtown Manhattan.
And JLL represented the owner Ivanhoé Cambridge (the real estate group of CDPQ) and Hines (as the asset manager and property manager) to arrange the refinancing led by Wells Fargo, Bank of America and Bank of Montreal.
3 Bryant Park stands out as one of New York City’s highest-performing trophy properties, a position that has been bolstered by continued capital investment from sponsorship since taking ownership, including the introduction of a brand-new amenity offering this year. Currently 97.2% leased, 3 Bryant Park features an elite roster of tenants, with a majority of the tower leased by creditworthy tenants like Salesforce, Stifel, Dechert LLP, US Bank, Lloyds Bank, and Standard Chartered.
This 42-story tower offers its tenants an array of unique and locational amenities including direct Bryant Park access, on-site Whole Foods and Equinox-anchored retail, a sprawling outdoor plaza with 16,000+ square feet of public space, a new conference center, a sky lobby with a coffee bar, and immediate access to the 42nd Street Subway station, serving the B, D, F, M and 7 lines. And the property also features a diverse array of dining options, including Valbella, Shake Shack, and Rosetta Bakery.
Bryant Park is one of the city’s most frequented green spaces, attracting 12+ million visitors annually. And due to its central location, equidistant from multiple transit hubs, including Grand Central Terminal, Penn Station and the Port Authority Bus Terminal, the Bryant Park micro-market stands out as one of New York City’s strongest submarkets, boasting a 0.8% vacancy rate for trophy office assets and commanding rents approximately 50% higher than the average for Midtown Class A properties.
The JLL Capital Markets Debt Advisory team representing the borrower was headed by Senior Managing Directors Christopher Peck and Drew Isaacson, Managing Director Lauren Kaufman and Directors Jennifer Zelko and Christopher Pratt.
Since Q3 of 2024, JLL has observed a significant surge in demand for large commercial real estate loans, like 3 Bryant Park. And JLL data shows a nearly 30% rise in lender quotes for JLL’s Debt Advisory transactions exceeding $100 million in the second half of 2024 compared to the same period in 2023. JLL’s Capital Markets group has over 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
KEY QUOTE:
“The successful refinancing of a globally renowned trophy office such as 3 Bryant Park signals a shift in market perception and offers an optimistic outlook for the future. The property’s exceptional tenant roster, prime location and record utilization have positioned this transaction as arguably the most significant office refinancing of its scale in the post-pandemic era.”
– Senior Managing Director Christopher Peck
