Brookfield obtains $1bn financing for NYC building

A consortium of banks have committed to lend up to $1 billion for two of Brookfield's World Financial Center properties.

Brookfield Asset Management has obtained up to $1 billion in financing for two of four office towers located in World Financial Center in New York City, also known as Brookfield Place.

Deutsche Bank, Royal Bank of Canada, Citibank, Bank of America and Wells Fargo have committed to lending $800 million to the commercial properties, located 225 Liberty Street and 250 Vesey Street. Brookfield can draw an additional $200 million if necessary.

The floating rate loan is currently at 3.44 percent and has a three-year term, according to a statement. The financing will be used for general improvements to the properties, a spokesperson told Private Debt Investor.

Brookfield acquired 46 percent ownership of the properties in 1996 through the recapitalisation of Olympia & York, later increasing its ownership stake to 99.4 percent, according to an April profile of the firm that appeared in PERE.

Brookfield is scheduled to hold a final close on its global real estate opportunities fund in the third quarter, according to a recent PERE report. The firm held a first close on $2.1 billion for the vehicle last year, contributing $1 billion to the fund as its lead investor. As of April 23, Brookfield had raised $2.8 billion for BSREP, which has targeted net returns of 16 percent and a 2.4x multiple. 

The firm maintains offices in New York, Toronto and Sydney and is led by Dennis Friedrich, Tom Farley, G. Mark Brown and Bryan Davis.