An H&R Real Estate Investment Trust unit and its partners secured a $1 billion, 10-year interest-only first mortgage financing for the Jackson Park property in Long Island City, N.Y., with the REIT's share coming to $500 million.
The interest rate on the financing is fixed at 3.25% per year for the entire term.
Following repayment of the property's existing construction facility and closing costs, the Canada-based REIT expects to receive approximately $195 million in net proceeds, which will go toward other debt repayment.
