JLL Arranges $1.125B Refinancing for 3 Bryant Park in Midtown Manhattan

JLL, a leading global commercial real estate services firm, has successfully arranged a $1.125 billion refinancing for 3 Bryant Park, a 1.2 million square-foot trophy office tower located in the Bryant Park micro-market of Midtown Manhattan. The refinancing was led by Wells Fargo, Bank of America, and Bank of Montreal, signaling renewed institutional confidence in premium office properties with strong fundamentals.

The 42-story tower, owned by Ivanhoé Cambridge (the real estate group of CDPQ) and asset-managed by Hines, features an elite roster of tenants, including Salesforce, Stifel, Dechert LLP, US Bank, Lloyds Bank, and Standard Chartered. With a 97.2% occupancy rate, the property's exceptional tenant roster, prime location, and record utilization have positioned this transaction as one of the most significant office refinancings of its scale in the post-pandemic era.



The Bryant Park micro-market stands out as one of New York City's strongest submarkets, boasting a 0.8% vacancy rate for trophy office assets and commanding rents approximately 50% higher than the average for Midtown Class A properties. The property's direct Bryant Park access, on-site Whole Foods and Equinox-anchored retail, sprawling outdoor plaza, new conference center, sky lobby with a coffee bar, and immediate access to multiple subway lines contribute to its high occupancy rate and ability to secure such a significant refinancing.

JLL's Capital Markets Debt Advisory team, led by Senior Managing Directors Christopher Peck and Drew Isaacson, Managing Director Lauren Kaufman, and Directors Jennifer Zelko and Christopher Pratt, successfully represented the borrower in this transaction. Peck noted, "The successful refinancing of a globally renowned trophy office such as 3 Bryant Park signals a shift in market perception and offers an optimistic outlook for the future."

Since Q3 2024, JLL has observed a significant surge in demand for large commercial real estate loans, with a nearly 30% rise in lender quotes for JLL's Debt Advisory transactions exceeding $100 million in the second half of 2024 compared to the same period in 2023. This transaction reflects the increasing liquidity for large office loans, buoyed by ample debt capital and increased confidence in the sector.



In conclusion, the $1.125 billion refinancing of 3 Bryant Park reflects the current state of the commercial real estate market in Midtown Manhattan, particularly for trophy office assets, with increasing liquidity, renewed institutional confidence, strong performance, and successful refinancing of well-positioned properties. The participation of three major banks in the refinancing signals renewed confidence in premium office properties with strong fundamentals, as the property's high occupancy rate, prime location, and exceptional tenant roster demonstrate its resilience and appeal in the face of broader market challenges.