Dec. 23 (Bloomberg) -- New York developer Sheldon Solow secured a $625 million loan from Deutsche Bank AG to refinance debt on 9 West 57th Street, a trophy tower in midtown Manhattan, as lenders focus on the best properties.
American International Group Inc. and JPMorgan Chase & Co. also vied to provide the financing, which may be packaged as bonds to be sold to investors, said two people familiar with the deal, who declined to be identified because the negotiations aren’t public. The loans would refinance debt that comes due in February that was bundled into securities in 2007 at the peak of the property bubble, according to data compiled by Bloomberg.
The competition underscores strong demand for prime properties in big cities even after the European debt crisis roiled markets and caused lenders to pull back from financing malls, skyscrapers and shopping centers. While Bank of America Corp. vacated 9 West in 2008, leaving about half of the 1.6 million-square foot (149,000 square-meter) tower empty, tenants include KKR & Co., Apollo Global Management LLC and luxury-goods maker Chanel SA, Bloomberg data show.
“As far as a plaza district office building, the location doesn’t get any better,” said Dan Fasulo, a managing director at Real Capital Analytics Inc., a New York-based firm which tracks commercial real estate sales.
Steve Solomon, a spokesman for Solow, Renee Calabro, for Deutsche Bank AG, Justin Perras of JPMorgan and Mark Herr of AIG declined to comment.
--With assistance from David Levitt and Noah Buhayar in New York. Editors: Pierre Paulden, Shannon D. Harrington
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