Sabey has landed a $250 million refinancing deal for its office and data center at 375 Pearl Street in New York City.
The Commercial Observer reports Wells Fargo and J.P. Morgan are providing a $220 million, 10-year, fixed-rate CMBS loan in the deal, which also includes $30 million in mezzanine debt, with a 16-floor, 500,000 sq ft office condominium unit within the 32-story building used as collateral.
Sabey Corporation and National Real Estate Advisors (NREA) will use the money to retire $234 million in existing debt on the property, fund upfront reserves and closing costs, and return $6.5 million in equity to the sponsors.
Sabey says its SDC Manhattan data center within the building has 5.7MW of capacity and includes an on-site substation and rooftop antenna. Data center space occupies seven of the floors in the building.
Previously known as Intergate.Manhattan, the Verizon Building, and One Brooklyn Bridge Plaza, the building was built for the New York Telephone Company in 1976. Taconic Investment Partners purchased the building from Verizon in 2007 for a reported $172 million, before Sabey Data Center Properties purchased the deed in lieu of foreclosure in 2011 for $120 million.
Prior to a large-scale redevelopment in 2016, the building was listed by the Daily Telegraph as one of the ugliest buildings in the world.