FOR IMMEDIATE RELEASE
June 26, 2009
MAYOR BLOOMBERG AND GOVERNOR PATERSON JOIN THE DURST ORGANIZATION TO ANNOUNCE $1.275 BILLION IN FINANCING FOR THE BANK OF AMERICA TOWER AT ONE BRYANT PARK
Largest Single Asset Real Estate Loan in Nation Issued Since Capital Markets Crashed Last Fall
Mayor Michael R. Bloomberg and Governor David Paterson joined The Durst Organization to announce $1.275 billion in financing for The Bank of America Tower at One Bryant Park. This is the first major real estate financing completed in the United States since capital markets crashed last fall. The first LEED Platinum certified commercial tower in the country, One Bryant Park is an Empire State Development Corporation Project and contributes $30 million annually in PILOTs. Originally, the project received $650 million in Liberty Bonds for construction of the building. The size of the new financing is $325 million larger than the financing for construction, which reflects the appreciation of the asset, a positive sign for New York City's economy.
"The financing of The Bank of America Tower at One Bryant Park is a great vote of confidence in the strength and vitality of our City's long-term economic future," said Mayor Bloomberg. "Liberty Bonds helped finance this tower after September 11th, 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. I'd like to congratulate The Durst Organization and its lending partners on this deal and thank them for their commitment to New York."
"This is both an extraordinary financial deal and an extraordinary environmental achievement for the City and State of New York," said Governor Paterson. "I want to congratulate everyone involved, including The Durst Organization and Bank of America, for working together to find a way, despite the difficult marketplace, to structure a deal that will generate significant revenue for the City, the State and the MTA. More than that, I hope that this positive news will spur a renewed sense of optimism that our economy is beginning to rebound and that such deals can be achieved."
The Bank of America Tower at One Bryant Park is a 50/50 joint venture of the Bank of America and The Durst Organization. Ground was broken on August 2nd, 2004 on the 2.1 million-square-foot-55-story building and has been open since May, 2008. It is 98% leased and is expected to be completed early in 2010. Designed by Cook + Fox Architects the building is the first LEED Platinum skyscraper ever built and is the most advanced building of its size in the United States.
"Thank you to our lenders, partners and advisors for getting this deal done," said Douglas Durst, Chairman of The Durst Organization. "We are very proud of One Bryant Park; the building has proven to be a trail blazer. It's the first LEED Platinum office tower in the United States. It was the largest skyscraper designed and built after September 11th, 2001 and now it's the first building to get a large loan after the credit markets froze last year. We are hopeful that this financing will engender additional lending and get our city, state and nation's economies back on track."
With an emphasis on sustainability, water efficiency, indoor environmental quality, and energy and atmosphere, One Bryant Park features a wide range of sophisticated environmental technologies, from filtered under-floor displacement air ventilation to advanced double-wall technology and translucent insulating glass in floor-to-ceiling windows that permit maximum daylight and optimum views. It also includes a state-of-the-art onsite 4.6-megawatt combined heat and power electric plant. The building makes 70% of its energy onsite by producing its own electricity and capturing and reusing waste from the combustion of natural gas in order to heat the building, make hot water and provide steam to power the air conditioning system. The building saves 10,000,000 gallons of water a year by using waterless urinals, collecting and reusing rain water and ground water and by recycling the water used in sinks.
The financing for the loan was provided by a consortium of financial institutions. Bank of America is the Administrative Agent and the Letter of Credit Issuer. The Bank of New York Mellon is the Construction Agent and Wells Fargo Bank is the Collateral Agent. Financing is also provided by Westdeutsche Immobilien Bank and Heleba Bank.
Stu Loeser/Andrew Brent (Mayor) (212) 788-2958
Marissa Shorenstein (Governor) (212) 681-4640
Jordan Barowitz (The Durst Organization) (212) 257-6605