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The Diamond Tower Gets $195 Million in Refinancing

Tower 46 in Midtown gets refinancing to complete building lease up.

NEW YORK CITY—The International Gem Tower, also known as the Diamond Tower or Tower 46, located at 55 W. 46th Street, is getting $195 million in refinancing, as the original loan which financed the acquisition was coming due. The loan will finance future leasing costs associated with any new leasing and capital improvements.

In Tower 46, SL Green Realty Corp., New York City’s largest office landlord and PGIM, Inc., the global investment management arm of Prudential Financial, Inc., own a commercial condominium unit, comprising 319,000 square feet, the top 13 floors, floors 22 through 34, along with the second floor that houses a fitness center, an underground parking garage, and ground floor retail space along 46th Street.

Designed by Skidmore, Owings & Merrill, LLP, the 347,000 square-foot building is known for its unique façade that was created for the jewelry, gem and diamond industry tenants. The 34-story building was completed in 2013 by Extell Development, whose president and founder, Gary Barnett, began his career as a diamond dealer in Antwerp, Belgium. Extell had successfully consolidated valuable air rights to build this tower among low rise buildings.

According to Real Capital Analytics, in October 2014, SL Green acquired the property from Extell for $295 million, obtaining a $190 million loan from Wells Fargo. In December 2014, SL Green sold a majority share interests in the property to PGIM, for an undisclosed amount.

M&T Bank, as administrative agent and left lead, and Natixis are the co-lead arrangers on the $195 million senior loan.

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