New York & Tri-State + Uptown/Bronx + Finance | August 10, 2021

Seventy-five percent of Manhattan office users have delayed bringing employees back due to omicron.

Gazit Horizons Closes $134M Financing on Upper East Side Home Depot

Gazit-Globe subsidiary Gazit Horizons has entered into a $134.4-million Credit Term Lease (CTL) bond financing for 410 E. 61st St. on Manhattan’s Upper East Side. The 120,000-square-foot property was leased last year to The Home Depot for a 20-year term, reportedly the largest new retail lease executed in Manhattan in 2020.

The new financing retires Gazit’s entire investment in the Property and generates additional proceeds on the investment of approximately $30 million. Ackman Ziff Real Estate Group advised Gazit in the transaction, with Mesirow Financial acting as placement agent.

“By using CTL financing rather than a traditional real estate loan, we were able to leverage the strong credit of our tenant and the value of our 20-year lease to recognize a strong profit on our investment and eliminate interest rate risk going forward, all while maintaining full ownership of the property,” said Jeff Mooallem, president & CEO of Gazit Horizons.

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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