Alexander’s Completes $400 Million Refinancing of 731 Lexington Avenue Office Condominium
Alexander's (NYSE: ALX) has successfully completed a $400 million refinancing of the office condominium portion of 731 Lexington Avenue, the Class A Bloomberg LP headquarters building. The new interest-only loan features a fixed rate of 5.045% and is set to mature in October 2028. This loan replaces the previous $490 million loan, which had an interest rate tied to the Prime rate (currently 8.00%) and was due to mature in October 2024.
The new financing arrangement allows Alexander's the option to prepay the loan without penalty starting from October 2026. Alexander's, Inc. is a real estate investment trust with a portfolio of five properties located in New York City.
Alexander's (NYSE: ALX) ha completato con successo un rifinanziamento di 400 milioni di dollari della porzione di condominio per uffici di 731 Lexington Avenue, sede centrale di Bloomberg LP di Classe A. Il nuovo prestito con solo interesse presenta un tasso fisso del 5,045% ed è previsto scadere a ottobre 2028. Questo prestito sostituisce il precedente prestito di 490 milioni di dollari, che aveva un tasso d'interesse legato al tasso Prime (attualmente 8,00%) e doveva scadere a ottobre 2024.
Il nuovo accordo di finanziamento consente ad Alexander's l'opzione di rimborsare anticipatamente il prestito senza penali a partire da ottobre 2026. Alexander's, Inc. è un fondo d'investimento immobiliare con un portafoglio di cinque proprietà situate a New York City.
Alexander's (NYSE: ALX) ha completado con éxito un refinanciamiento de 400 millones de dólares de la porción de condominio de oficinas de 731 Lexington Avenue, el edificio sede de Bloomberg LP de Clase A. El nuevo préstamo solo de interés presenta una tasa fija del 5.045% y tiene vencimiento en octubre de 2028. Este préstamo reemplaza el préstamo anterior de 490 millones de dólares, que tenía una tasa de interés vinculada a la tasa Prime (actualmente al 8.00%) y debía vencer en octubre de 2024.
El nuevo acuerdo de financiamiento permite a Alexander's la opción de prepagar el préstamo sin penalización comenzando en octubre de 2026. Alexander's, Inc. es un fondo de inversión inmobiliaria con un portafolio de cinco propiedades ubicadas en la ciudad de Nueva York.
알렉산더스 (NYSE: ALX)는 731 렉싱턴 애비뉴의 사무실 콘도미니엄 부분에 대해 4억 달러의 재융자를 성공적으로 완료했습니다. 이 빌딩은 클래스 A 블룸버그 LP 본사 건물입니다. 새로운 이자 전액 대출는 5.045%의 고정 금리가 특징이며 2028년 10월에 만기가 도래합니다. 이 대출은 이전의 4억 9천만 달러 대출을 대체하며, 그 대출은 현재 8.00%인 프라임 금리에 연동된 이자율을 가지고 있었고 2024년 10월 만기가 예정되어 있었습니다.
새로운 재무 계약은 알렉산더스에게 2026년 10월부터 벌금 없이 대출을 조기 상환할 수 있는 옵션을 제공합니다. 알렉산더스, Inc.는 뉴욕시에 위치한 다섯 개의 자산을 보유한 부동산 투자 신탁입니다.
Alexander's (NYSE: ALX) a réussi à finaliser un refinancement de 400 millions de dollars de la portion de condominium de bureau de 731 Lexington Avenue, le bâtiment de siège social de Bloomberg LP de Classe A. Le nouveau prêt à intérêt uniquement présente un taux fixe de 5,045% et doit arriver à échéance en octobre 2028. Ce prêt remplace l'ancien prêt de 490 millions de dollars, qui avait un taux d'intérêt lié au taux Prime (actuellement à 8,00%) et devait arriver à échéance en octobre 2024.
Le nouvel accord de financement permet à Alexander's d'opter pour un remboursement anticipé sans pénalité à partir de d'octobre 2026. Alexander's, Inc. est un fonds d'investissement immobilier avec un portefeuille de cinq propriétés situées à New York.
Alexander's (NYSE: ALX) hat erfolgreich eine Refinanzierung von 400 Millionen Dollar für den Bürowohnungsteil von 731 Lexington Avenue, dem Klass A Hauptsitz von Bloomberg LP, abgeschlossen. Das neue zinslose Darlehen bietet einen festen Zinssatz von 5,045% und hat eine Fälligkeit im Oktober 2028. Dieses Darlehen ersetzt das vorherige Darlehen von 490 Millionen Dollar, das an den Prime-Zinssatz (aktuell 8,00%) gebunden war und im Oktober 2024 fällig war.
Die neue Finanzierungsvereinbarung ermöglicht es Alexander's, die Option zu haben, das Darlehen ab Oktober 2026 ohne Strafe vorzeitig zurückzuzahlen. Alexander's, Inc. ist ein Immobilienfonds mit einem Portfolio von fünf Objekten in New York City.
- Secured a lower fixed interest rate of 5.045% compared to the previous Prime rate-based loan (currently 8.00%)
- Extended loan maturity from October 2024 to October 2028, improving financial stability
- Obtained prepayment option without penalty starting October 2026, enhancing financial flexibility
- Refinanced $400 million, reducing the loan amount from the previous $490 million
- None.
Insights
Alexander's successful refinancing of the 731 Lexington Avenue office condominium is a significant financial move with positive implications. The new
- A fixed interest rate of
5.045% , which is considerably lower than the previous Prime rate-based loan (currently at8.00% ) - Interest-only terms, improving short-term cash flow
- A four-year maturity to October 2028, extending the debt timeline
- Prepayment option without penalty after two years, providing flexibility
This refinancing should result in substantial interest savings and improved cash flow for Alexander's. The reduced loan amount (
This refinancing deal for Alexander's flagship property at 731 Lexington Avenue is a strong indicator of the company's asset quality and market position. The ability to secure a
- The fixed rate of
5.045% is competitive for Class A office space in Manhattan, reflecting the property's prime location and blue-chip tenant (Bloomberg LP) - The interest-only structure suggests lender confidence in the property's value and income stability
- The
$90 million reduction in loan amount may indicate conservative leverage management or changes in property valuation
This transaction underscores the resilience of top-tier office assets in prime locations, even as the broader office market faces challenges. It also positions Alexander's well for potential market improvements or future refinancing opportunities.
PARAMUS, N.J., Sept. 30, 2024 (GLOBE NEWSWIRE) -- Alexander’s, Inc. (NYSE: ALX) today announced that it has completed a
The loan replaces the prior
Alexander’s, Inc. is a real estate investment trust that has five properties in New York City.
CONTACT:
GARY HANSEN
(201) 587-8541
Certain statements contained herein constitute forward-looking statements as such term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not guarantees of performance. They represent our intentions, plans, expectations and beliefs and are subject to numerous assumptions, risks and uncertainties. Our future results, financial condition and business may differ materially from those expressed in these forward-looking statements. Many of the factors that will determine the outcome of these and our other forward-looking statements are beyond our ability to control or predict. Currently, some of the factors are the increase in interest rates and inflation on our business, financial condition, results of operations, cash flows, operating performance and the effect that these factors have had and may continue to have on our tenants, the global, national, regional and local economies and financial markets and the real estate market in general. For further discussion of factors that could materially affect the outcome of our forward-looking statements, see "Item 1A. Risk Factors" in Part I of our Annual Report on Form 10-K for the year ended December 31, 2023. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section.
FAQ
What is the new interest rate for Alexander's (ALX) refinanced loan on 731 Lexington Avenue?
When does the new $400 million loan for Alexander's (ALX) 731 Lexington Avenue property mature?
What was the interest rate on Alexander's (ALX) previous loan for 731 Lexington Avenue?
When can Alexander's (ALX) prepay the new $400 million loan without penalty?
