Alexander’s, Inc. has restructured the $300-million mortgage loan on the retail condominium of 731 Lexington Ave. in Midtown Manhattan. Under the terms of the restructuring, the existing loan was split into a $132.5-million senior A-Note accruing current interest at 7.00% per annum and a $167.5- million junior C-Note accruing interest at 4.55% per annum, with a new maturity date of December 23, 2035.
At the closing of the restructuring, an affiliate of Alexander’s purchased the $132.5-million senior A-Note from the existing lenders at par. The Alexander’s affiliate also entered into a new B-Note with the borrower. Via the B-Note, funds that are loaned to the borrower, for capital and re-leasing expenses, and to fund interest on the A-Note, accrue interest at 13.5% per annum, except for loan amounts above $65 million used to pay interest on the A-Note, which accrue at 7.00%.
The office portion of 731 Lexington houses the headquarters of Bloomberg LP. Alexander’s refinanced the office portion for $400 million in 2024.
