Chinese conglomerate HNA Group Co. Ltd. and partners MHP Real Estate Services and ATCO Properties & Management Inc. refinanced the 21-story office tower at 850 Third Ave. in New York City with a new US$342 million loan, The Real Deal reported, citing unnamed sources.
Sources told the publication that French bank Natixis, office real estate investment trust Paramount Group Inc. and asset manager Harbor Group International provided the floating-rate loan, which includes mezzanine financing of US$75 million from Paramount and US$25 million from Harbor Group.
The short-term financing supersedes an existing Morgan Stanley loan package, which totaled US$238 million when the partners bought the property for US$463 million in 2016.
The 617,000-square-foot building is undergoing major renovation, and it is expected to be nearly one-third vacant when anchor tenant Discovery Communications vacates its roughly 190,000-square-foot space in May 2020.
Newmark Knight Frank brokered the loan.
The property owners were not available for comment, according to the publication.