Durst Lines Up $1.3B Refi on BofA Tower

NEW YORK CITY-In what’s reportedly the largest single-asset real estate loan since the capital markets tanked last fall, the Durst Organization will refinance its Bank of America Tower at One Bryant Park with a $1.275-billion package from BofA and four other lenders. The loan will be used to retire a $950-million construction debt, repay investors and complete work on the 2.1-million-square-foot tower, which is aiming for LEED Platinum certification.

“We are hopeful that this is a sign of increased liquidity in the banking system,” a Durst spokesman tells GlobeSt.com. A release from the mayor’s office notes that the refi represents an appreciation in value on the 51-story One Bryant Park, since the loan is $325 million larger than the construction financing, which included $650 million in Liberty Bonds.

In the release, Mayor Michael Bloomberg comments, “Liberty Bonds helped finance this tower after 9/11, sending a signal to the world that the city remained open for development and business. This most recent financing is a great indication that New York City remains well poised for growth.”

BofA arranged the three-year loan, which reportedly took nine months to set up, and holds 50% of it, the Durst spokesman says. The four other banks in the consortium–the Bank of New York Mellon, Wells Fargo Bank, Westdeutsche ImmobilienBank and Helaba Bank–had “about an equal share of the rest,” the spokesman adds. Bank of America serves as both the administrative agent and letter of credit issuer, while Mellon is the construction agent and Wells Fargo is the collateral agent.

“We are very proud of One Bryant Park; the building has proven to be a trailblazer,” says Douglas Durst, chairman and co-president of the Durst Organization, in a release. “It was the largest skyscraper designed and built after 9/11 and now it’s the first building to get a large loan after the credit markets froze last year.”

Durst will leave the co-presidency upon completion of One Bryant Park, currently expected to occur at the end of first quarter 2010, the spokesman says. His cousin Jody Durst will assume the full duties of company president, while Douglas Durst will remain as chairman. The building opened for business last year at the corner of 42nd Street and Avenue of the Americas, and is currently 98% occupied.