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CMA
February 10, 2017  

Crown Team Seeking $1 Billion on NY Tower

A joint venture between Crown Acquisitions and Oxford Properties is quietly shopping for $1 billion of debt on an office/retail complex in Midtown Manhattan.

The collateral, encompassing 505,000 square feet, consists of the bottom portion of Olympic Tower, at 641 Fifth Avenue, and three adjacent townhouse-style buildings leased to luxury retailers, including Versace and Cartier.

The team is pitching the assignment to a handful of securitization lenders itself, without using a broker. It appears to be seeking a fixed-rate loan with a 10-year term.

The complex, between East 51st and East 52nd Streets on the east side of Fifth Avenue, is worth an estimated $1.7 billion to $2 billion — a valuation bolstered by the retail leases. The space is 94.4% occupied, according to CoStar.

The property was formerly owned by the Alexander S. Onassis Public Benefit Foundation. In 2012, New York-based Crown and Oxford, which is the Toronto-based real estate arm of Ontario Municipal Employees, acquired a 49.9% stake for $418.9 million. The duo purchased the remaining 50.1% stake from the foundation in 2015 for $651.6 million.

Olympic Tower has 51 floors, including residential condominiums on the upper 30 floors. The Crown-Oxford partnership owns the lower 21 floors, which is office space, except for street-level shops. It also owns the adjacent townhouses, at 647 and 653 Fifth Avenue and 10 East 52nd Street.

The tower, built in 1975, overlooks St. Patrick’s Cathedral and Rockefeller Center. The office tenants include the National Basketball Association and MSD Capital, which has a lease on 45,000 sf until December 2019.

In addition to Versace and Cartier, the retail tenants on the ground floor of Olympic Tower and in the townhouses include Alfred Dunhill, AX Armani Exchange and Longchamp.