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<\/p>\nBrookfield Corp. is coughing up a bundle of cash to refinance a piece of its most valuable office property.<\/p>\n
<\/p>\n
\n 225 Liberty St. is one of three towers in Brookfield Place, an office and retail complex in Lower Manhattan.\n <\/p>\n
The Canadian\u00a0investment\u00a0giant has lined up an $800M CMBS loan for 225 Liberty St., a 44-story tower in the Brookfield Place<\/a> office and retail complex, which sits a block from the World Trade Center.<\/p>\n Along with the mortgage, Brookfield plans to spend $172.5M of cash equity to refinance the 2.4M SF property’s $900M CMBS loan, according to a KBRA report<\/a> published Wednesday. The existing debt was originated in 2016 and matures on Friday, according to a 2023 S&P Global Ratings report<\/a>.<\/p>\n Citi Real Estate Funding, JPMorgan Chase, The Bank of Nova Scotia and Wells Fargo are all lenders on the new fixed-rate, five-year mortgage for the Class-A tower in Battery Park City, with an expected interest rate of nearly 5.9%. The previous interest rate was 4.7%, according to the S&P report.<\/p>\n A recent appraisal valued the tower at $1.3B, according to KBRA. Brookfield Properties is the largest tenant, occupying 535K SF in the building,\u00a0which was 90.1% leased as of\u00a0November.\u00a0<\/p>\n That figure doesn’t include Saks Global, which\u00a0signed\u00a0a 233K SF<\/a>\u00a0office lease \u2014\u00a09.4% of the building \u2014 in 2014. The\u00a0retailer filed for bankruptcy in January<\/a>. Its lease expires in\u00a02031, but it is delinquent on its rent and \u201cis considered vacant,\u201d according to the KBRA report.\u00a0<\/p>\n \u201cBrookfield Place continues to garner top-of-market rents, and 225 Liberty is fully leased,\u201d a Brookfield spokesperson said in a statement. \u201cIn 2025 alone, companies leased 2.1 million square feet of office space at Brookfield Place, more than 40 percent of all office leasing done in Lower Manhattan. If we do end up with unexpected space to lease, we will be very confident in the outcome.\u201d<\/p>\n The refinancing follows Brookfield\u00a0extending its ground lease<\/a>\u00a0for the entire Brookfield Place complex until 2119 with the Battery Park City Authority, which owns the land underneath.<\/p>\n The 14-acre property, which also includes a sprawling retail complex and the office towers at 200 and 250 Vesey St., was developed in the late 1980s as the World Financial Center by Brookfield’s predecessor, Olympia & York.\u00a0<\/p>\n Brookfield pays the BPCA $7M a year through the ground lease, which increases by 10% every five years and by 20% after 16 years, according to KBRA.<\/p>\n Brookfield Place is the most valuable office property in the $1T portfolio of Brookfield Corp., valued at $4B, according to a 2025 investor presentation<\/a>. Its other NYC holdings include the Manhattan West complex, valued at $3.3B, and the retail condo at 730 Fifth Ave., valued at $1.2B.\u00a0<\/p>\n Those holdings don’t include the assets owned by Brookfield Asset Management, the New York-based private equity company that owns 660 Fifth Ave. and a portion of The New York Times Building on Eighth Avenue. BAM is a separate company majority owned by Brookfield Corp.<\/p>\n Both entities have been tapping the CMBS<\/a>\u00a0market\u00a0to\u00a0refinance\u00a0their Manhattan properties. Brookfield\u00a0landed\u00a0a $1.25B CMBS package<\/a>\u00a0at Five Manhattan West and a $1.3B loan<\/a>\u00a0at 660 Fifth Ave. last year.<\/p>\n UPDATE, FEB. 5, 2:45 P.M. ET:\u00a0This story has been updated to include a statement from a Brookfield spokesperson.<\/p>\n","protected":false},"excerpt":{"rendered":"Brookfield Corp. is coughing up a bundle of cash to refinance a piece of its most valuable office…\n","protected":false},"author":2,"featured_media":124421,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[54187,32174,22468,4317,54188,9,11,10,54186,28914],"class_list":{"0":"post-124420","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york","8":"tag-225-liberty-st","9":"tag-brookfield-place","10":"tag-brookfield-properties","11":"tag-cmbs","12":"tag-kbra","13":"tag-new-york","14":"tag-new-york-headlines","15":"tag-new-york-news","16":"tag-sp-global-ratings","17":"tag-saks"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/124420","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=124420"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/124420\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/124421"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=124420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=124420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=124420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}