Dealmaker: Newmark Facilitates $450M Refinancing for Texas Office Property

Newmark, New York, facilitated a $450 million refinancing loan for an office skyscraper in Houston.

Newmark Co-Heads of Global Debt & Structured Finance Jordan Roeschlaub and Jonathan Firestone, Vice Chairmen Clint Frease and Blake Thompson, Managing Director Travis Bailey, Director Peter Mavredakis and Associate Director Tim Polglase assembled the financing package on behalf of owners, Hines and Ivanhoé Cambridge, the real estate group of CDPQ.

Wells Fargo and Morgan Stanley provided the funding.

“The refinancing for this award-winning property was particularly notable as it marked the first time in two years that a multi-tenant office tower outside of New York City was financed in the CMBS single-asset, single-borrower market,”  Firestone said. “Our team worked closely with the lender to navigate rating agency and appraisal feedback, ultimately driving exceptional investor demand. The AAA-rated bonds were nearly five times oversubscribed, while lower tranches saw demand outstrip supply by as much as 20 times. This overwhelming interest led to pricing tightening significantly, resulting in final loan terms that exceeded expectations and an exceptional result for our clients.”

The property, called Texas Tower, provides 1.2 million square feet of space and is currently 95% leased. It was delivered in 2021 and includes tenants such as Vinson & Elkins, Morgan Stanley, Cheniere Energy, Clifford Change and Hines.