(Bloomberg) – Blackstone Corp. is refinancing $550 million in municipal bonds for 8 Spruce Street, a 76-story residential tower in downtown Manhattan designed by renowned architect Frank Gehry.
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The New York City Housing Development Corporation is expected to price the debt on Tuesday on behalf of Blackstone, which bought the building from Brookfield Asset Management and Nuveen LLC in 2022 for $930 million.
Approximately $204 million of the securities are tax-exempt and are part of the Liberty Bond Program, part of a federal stimulus package approved in 2002 to help lower Manhattan rebuild from the 9/11 terrorist attacks. Published based on.
The initiative would allocate $8 billion in tax-free funds, the largest of which, $3 billion, would be used by developer Larry Silverstein to rebuild the World Trade Center site. Goldman Sachs Group and Bank of America also used the program to finance the construction of their New York headquarters.
Bank of America will act as lead manager for the bond sale. A bank spokeswoman declined to comment.
8 Spruce, formerly known as Beekman Tower and later rebranded, was built by real estate developer Forest City Ratner. Forest City received approval to issue Liberty Bonds in 2008, and the building opened in 2011.
The Liberty bonds were refinanced in 2014, according to a New York City HDC memo. These securities will be issued on an interest-only basis and will have a term ending in November 2024.
At 870 feet tall, Eight Spruce is known for its wavy stainless steel and glass exterior with floor-to-ceiling windows. The building has 900 units, including two reserved for Gehry, including the Guggenheim Museum Bilbao in Spain and the Walt Disney Concert Hall in Los Angeles.
Each unit features Douglas fir cabinetry, a wine refrigerator, and stunning views of the city. A fitness center with an outdoor sundeck, screening room, golf simulator, indoor pool, sauna, yoga room and spin studio is also available.
“Frank Gehry’s 8 Spruce Street is an iconic building that offers unique amenities right at residents’ doorstep,” a Blackstone spokesperson said in an emailed statement. “The strong demand for this refinance reflects the high quality of the property.”
As of August, the building was about 97% occupied and the average monthly base rent was $6,015, according to Moody’s Ratings. The tower was valued by the city at $802 million and received a 20-year tax abatement.
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