Dealmaker: Walker & Dunlop Arranges $407M for 450 Lexington in New York

(Illustration courtesy of RXR)

Walker & Dunlop, Bethesda, Md., arranged $407.5 million to refinance 450 Lexington Avenue, a 40-story Class A office tower in Midtown Manhattan’s Grand Central submarket.

Walker & Dunlop Capital Markets Institutional Advisory arranged the transaction on behalf of RXR, PSP Investments and institutional investors advised by J.P. Morgan Asset Management.

Aaron Appel, Jonathan Schwartz, Keith Kurland, Adam Schwartz, Dustin Stolly, Sean Reimer, Jordan Casella, Michael Brown, Christopher de Raet and Jack Krentzman from Walker & Dunlop arranged the commercial mortgage-backed securities single-asset, single-borrower, floating-rate, interest-only financing from Morgan Stanley and Bank of America.

Rising 40 stories above the intersection of East 45th Street and Lexington Avenue atop the Grand Central Post Office, 450 Lexington offers 950,824 rentable square feet. The property is nearing completion of a multi-year capital improvement program and earned an EnergyStar score of 88 last year. Adjacent to Grand Central Terminal, the building offers immediate access to subway, bus, Metro-North and LIRR service. The half–city-block property fronts Lexington Avenue and is surrounded by high-street retail and a mix of restaurants.

“450 Lexington represents exactly the kind of institutional, transit-oriented asset capital providers are competing for in today’s market. Liquidity is firmly in place for best-in-class Midtown product, and the building’s long-dated, blue-chip income stream drove significant competition among lenders,” Appel said.

RXR Chairman and CEO Scott Rechler noted the refinancing reflects continued demand for quality office assets in prime locations. “With its long-term tenancy, extensive recent upgrades, and location in the heart of the Grand Central district, 450 Lexington Avenue represents the type of high-quality asset that continues to attract institutional capital,” he said.