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CMA
May 26, 2017  

Natixis Backing Ivanhoe Deal for 85 Broad St.

Natixis has agreed to lend $360 million to Ivanhoe Cambridge to finance its acquisition of the office building at 85 Broad Street in Lower Manhattan.

Ivanhoe, a real estate unit of Montreal pension fund advisor Caisse de Depot et Placement du Quebec, is paying $658 million for the 1.1 million-square-foot tower, which was formerly the headquarters of Goldman Sachs. The seller is a joint venture between MetLife Real Estate Investors and Beacon Capital of Boston. Eastdil Secured is brokering both the sale and the financing.

Natixis will securitize the fixed-rate loan, which has a 10-year term and a leverage ratio of only 55%.

Goldman built the 30-story property in 1983 and was the sole occupant of its office space until 2010. The investment bank sold the property to MetLife in 1985 for $74.4 million. Three years ago, MetLife sold a 50% stake to Beacon in a deal that valued the building at $350 million — even though it was half-empty at the time.

The occupancy rate now stands at 87.7%, with a weighted average remaining lease term of 12.5 years. The tenants include a Berkshire Hathaway affiliate, Nielsen, Oppenheimer & Co., Vox Media and WeWork.

A renovation in the works will add a conference center and a wellness center. The building recently won a LEED platinum designation. There is a restaurant on the ground floor.

The building is in the heart of the Financial District, occupying the block bounded by Broad, Pearl and South William Streets, and Coenties Alley.