C&W gets 30-year, fixed rate on $475M mortgage

Real Estate Weekly, Oct 12, 2005

Cushman & Wakefield announced it represented Marsh & McLennan Companies, the global professional services firm, in the $475 million mortgage financing of 1166 Avenue of the Americas.

Cushman & Wakefield's Investment Banking Group acted as financial advisor and exclusive placement agent to MMC in the transaction.

"We were pleased to assist MMC in this significant financing transaction," said Michael Rotchford, executive managing director and head of Cushman & Wakefield's Investment Banking Group.

"MMC was able to lock in 30-year, fixed rate, financing at today's attractive interest rates."

The mortgage was secured by a portion of MMC condominium interest in 1166 Avenue of the Americas. The building, located between 45th and 46th Streets, serves as MMC's world headquarters.

MMC took advantage of the competitive market for New York class A central business district office properties, as well as the historically low interest rate environment, to refinance an existing mortgage. By doing so, MMC was able to generate cash proceeds and lower its cost of capital.

"Marsh & McLennan is a sophisticated global firm that has been wise to lock in and increase its own asset value in the hottest real estate market in the world, Midtown Manhattan," said John Cushman, chairman of Cushman & Wakefield. "We're proud that they relied on Cushman & Wakefield's financial real estate knowledge to guide them in their decision."

Lehman Brothers acted as the mortgage lender for the transaction.

Built in 1974, 1166 Avenue of the Americas is a 44-story, class A office building totaling approximately 1.7 million square feet.