Related companies and Allianz‘s Acquisition for $ 2.2 billion of a gigantic office condominium in 30 meters from Hudson was funded in part by a $ 1.43 billion CMBS loan German bank, Wells fargo and Goldman Sachs, according to Fitch reviews, who analyzed the massive debt deal.

The transaction involves Allianz buys 49% of the capital in the office condominium, which spans 26 floors of the 90-story skyscraper, as Reuters previously reported. WarnerMedia, an AT&T subsidiary, had controlled the office space but sold it back to Related, along with its minority partner Allianz, under a sale-leaseback agreement.

In addition to CMBS debt, the two buyers contribute a total of $ 782 million in equity, for a loan-to-value ratio of around 65%. Debt consists of $ 1.12 billion of senior notes and $ 310 million of a junior tranche. The Related-Allianz joint venture will pay 3.35% interest on the 10-year loan, with no principal repayment until maturity in 2029.

WarnerMedia, the parent company of Warner Bros., CNN, HBO, Cinemax and a variety of regional sports networks, has a 15-year lease for its 1 million square foot footprint in the building, where it pays $ 75 per square foot.

Cushman and Wakefield represented Related in the debt agreement and also advised WarnerMedia on its side of the sale-leaseback agreement. Steve kohn, Rob rubano, Alex hernandez and Brian Share found the debt for Related, while Doug Harmon, Adam spies and Kevin Donner advised WarnerMedia.

The building, at the corner of Tenth Avenue and West 33rd Street, also houses Wells fargo, Norwegian financial group DNB and Arosa Capital Management as tenants. KKR Also has its own 343,000 square foot office condominium in the tower, and earlier this month it took over a refinancing of $ 490 million of Deutsche Bank against its participation in this part of the building.

Conceived by Fox Kohn Pedersen, the 1,268-foot tower opened in mid-March and has the tallest viewing platform in the Western Hemisphere. The shops and restaurants of Hudson Yards, a nearly 700,000 square foot high-end shopping center, connects the tower to 10 meters from Hudson the next door. WarnerMedia has spent $ 700 million to fit out its office condominium in the tower, and its employees have a private entrance to the building on West 33rd Street.

WarnerMedia plans to use its space as the world headquarters of CNN, HBO, Warner Bros. and Tru TV. Facilities on its floors include a cafeteria, fitness center, auditorium and cinema on two levels and an outdoor terrace.

Related and Allianz can expect to make $ 146 million per year from WarnerMedia’s rental of the office building, against an expected annual spend of $ 106.8 million, according to Fitch.

Representatives for Related and Allianz did not immediately respond to inquiries. A spokesperson for Deutsche Bank declined to comment.


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