Gazit Horizons has refinanced its four-story Upper East Side retail property that was the subject of Manhattan’s largest retail lease of 2020.
The U.S.-based subsidiary of Israeli real estate investment firm Gazit Globe announced that it has locked in $134.4 million in permanent credit term lease bond financing acquired by the retail property itself at 410 East 61st Street as well as The Home Depot’s 20-year, 120,000-Sq Ft. lease at the property, it signed for last October, the largest retail lease (by size and rent) in Manhattan during a pandemic-stricken 2020.
Mesirow Financial issued and placed the bonds via the credit term lease financing structure, per Gazit’s announcement. The non-recourse financing carries a fixed rate of 3.295%.
Gazit Horizons President and CEO Jeff Mooallem stated that the closing of their $134.4 million dollar bond this week represents another major step forward in our value creation from this asset and the company has worked diligently to obtain all necessary approvals, setting the stage for this permanent financing since signing Home Depot to occupy the asset.
With this deal, Gazit was able to generate about $30 million in additional proceeds on its initial investments in the property, the firm said. It picked up its interest in the property for about $80 million, across two deals that occurred in 2017 and 2018.