Real Estate Department Advises Harbor Group International in Origination of Junior Mezzanine Loan

July 3, 2018

Firm advises on $342 million refinancing of 850 Third Avenue, a 21-story, 617,000-square-foot commercial office building in Manhattan.

Willkie represented Harbor Group International (HGI) in connection with HNA’s (in partnership with MHP Real Estate Services and ATCO Properties & Management) $342 million refinancing of 850 Third Avenue, a 21-story, 617,000-square-foot commercial office building in Manhattan. The proceeds from the refinancing were used to repay HNA’s existing financing and will also be used to reposition the asset to address planned lease expirations. The lending group consisted of French bank Natixis, real estate investment trust Paramount Group and HGI, and was structured as $242 million CMBS loan (originated by Natixis) with $100 million of mezzanine financing ($75 million originated by Paramount Group and $25 million originated by HGI). HGI is the most junior mezzanine lender in the debt stack. 

Based in Norfolk, VA, HGI is a leading global real estate investment and management firm that invests in and manages diversified property portfolios including office, retail, and multifamily properties. HGI owns and manages more than 193 assets worldwide, 30,000 multifamily units, and 4.8 million square feet of commercial real estate with an aggregate gross asset value of approximately $7.3 billion.

The transaction was handled by partners Daniel Backer and Carly Saviano.