Deutsche Pfandbriefbank originates$150m loan to finance Midtown office tower

German bank pbb Deutsche Pfandbriefbank is originating a $150 million loan to finance the renovaiton of an office tower at 295 Fifth Avenue in New York on behalf of a trio of borrowers.

Newmark arranged the November 17 deal for Meadow Partners, PGIM Real Estate and Tribeca Investment Group for what will soon be a 19-story, 710,000-square-foot renovated trophy office asset in the Midtown South submarket of Manhattan.

Jordan Roeschlaub, vice-chairman and co-head of Newmark’s debt and structured finance team, said the New York advisory has seen office users flocking to quality assets to attract and retain talent since the covid-19 pandemic. The recent modernization of 295 Fifth Avenue will make it a destination property for office tenants, he added.

The renovation includes a conversion to full-floor open-floor plates, a double-height lobby, updated retail storefronts, terraces and a new amenity center for the property.

Dustin Stolly, fellow vice-chairman and co-head of the debt and structured finance team at Newmark, said being able to secure financing for an office product during the current market uncertainty speaks to the quality of the collective ownership of the property.

Stolly and Roeschlaub led the Newmark team on this deal alongside senior managing directors Christopher Kramer, Nick Scribani, director Ben Kroll and finance analyst Holden Witkoff.

The property is positioned to capitalize on the ‘flight to quality’ seen in the office sector. It is situated in Midtown South along the Park Avenue South Square Park corridor – an area that has drawn tenants spanning the financial service, media, entertainment and technology industries.

For PGIM Real Estate, the office financing arrives just over a week after the New Jersey-based real estate investment manager made its largest debt transaction of 2022 by providing more than $1 billion in floating rate financing to acquire a stake in a 22-property multifamily portfolio. The firm also expanded its retail lending exposure In September with a $292 million floating rate financing package.