NEW YORK--(BUSINESS WIRE)--Taconic Capital Advisors LP (“Taconic”) today announced that it provided Tishman Speyer, a leading owner, developer, operator, and investment manager of first-class real estate in 33 key markets across the United States, Europe, Asia, and Latin America, with a $56.0 million mezzanine loan to facilitate the refinancing of its Class A office tower located at 11 West 42nd Street in New York City’s prestigious Bryant Park district.
Designed by York & Sawyer and completed in 1927, 11 West 42nd Street employs an “H”-shape layout, which allows for eight corner offices per floor and brings in natural sunlight throughout the building. Situated on the north side of 42nd Street between Fifth and Sixth Avenues, the LEED Silver-certified tower offers spectacular views of Bryant Park and the New York Public Library, and is a short walk to Grand Central Terminal, Penn Station, Times Square and a host of subway lines. The building’s tenant roster is and historically has been one of the strongest in the submarket and includes Michael Kors, First Citizens Bank, New York University’s Midtown Center and Burberry.
“As negative sentiment in the office market persists, we continue to find nuanced, less-competitive opportunities in both private and public credit,” said Andrew Lam, Director in Taconic Capital Advisors’ Commercial Real Estate Group. “This transaction further illustrates the tactical shift we made towards lending at a time when many traditional sources continue to shy away.”
Taconic acquired the mezzanine loan from Bank of America, who originated the loan and serves as the lead mortgage syndicate lender on a new five-year fixed-rate loan. The debt proceeds, together with additional borrower equity, were used to retire the existing debt on the property and fund reserves for Tishman Speyer’s ongoing leasing program.
About Taconic Capital Advisors
Taconic Capital Advisors is a global institutional investment firm that pursues an event-driven, multi-strategy investment approach designed to generate strong, risk-adjusted returns over multiple market cycles. Taconic was founded in 1999 by former Goldman Sachs partners Frank Brosens and Ken Brody. The firm has approximately $7 billion of total assets under management with offices in New York and London and more than 100 employees worldwide.
Taconic’s full-service commercial real estate platform invests in all asset classes and across the capital structure in both public and private markets. The strategy’s broad mandate offers flexibility to capitalize on shifting market opportunities, creating uncorrelated risk-adjusted return profiles for investors. Rooted in distressed and opportunistic investing, the team applies high-touch asset management capabilities to drive strong asset-level performance and capital market executions. Well-established relationships drive Taconic’s differentiated and diverse transaction sourcing channels which include local operating partners, investor partners and a broad network of lenders, CMBS special servicers, trading desks and brokerage houses.
Taconic’s series of closed-ended real estate funds are fully discretionary and have received over $1 billion in capital commitments. Investments to date across all Taconic funds total over $3 billion of gross asset value across roughly 175 distinct transactions.