Hypo Real Estate Capital Corporation â" the New York-based subsidiary of Hypo Real Estate Bank International â" provided $63.75 million of a $127.5 million loan in December 2004 for the acquisition of the original New York Times Building located at 229 West 43rd Street.
Bank of America, the administrative agent, provided the remaining $63.75 million.
The borrower, TS 229 West 43rd Street LLC, is a joint venture consisting of Tishman Speyer, Travellers Real Estate Venture VI (a newly formed fund of Tishman Speyer Properties), the New York City Employeesâ Retirement System (NYCERS) and the Teachersâ Retirement System (TRS).
As part of the sale, the transaction was structured as a sale-lease-back with the New York Times Company agreeing to remain in the building as a tenant until its new building is ready for occupancy in 2007. Once vacated, an extensive renovation of the 15-story, 750,000-square-foot building will be commenced in order to transform it to a state-of-the-art, Class-A office property. In addition to a new lobby, tenant floors will be redesigned to take advantage of the building´s high ceilings and many windows. The building´s loading docks will be converted into retail space.
âHypo Real Estate Capital is extremely pleased to provide financing to Tishman Speyer for the acquisition of one of New York Cityâs most historic buildings,â said Evan F. Denner, head of real estate finance for Hypo Real Estate Capital Corp. âHypo Real Estate will continue to build its market presence in New York City by providing creative financing solutions to our elite client base.â
Source: Hypo Real Estate