New York, NY (March 09, 2023) — GDS Development Management (GDSNY) and Corem announced today that they have closed a $90 million loan on their trophy office tower at 1245 Broadway with German bank Deutsche Pfandbriefbank (pbb), one of Europe’s leading real estate financing institutions. Newmark’s Debt & Structured Finance team secured the loan on behalf of ownership. The low-leverage take-out facility will include financing current and future tenant fit-outs for the 200,000-square-foot tower in NoMad.

“We are delighted to be partnering with a lending institution with pbb’s stellar reputation for the financing at 1245 Broadway,” said Alan Rudikoff, co-founder of GDSNY. “This property is well-positioned to capitalize on the ‘flight to quality’ seen in the office sector.”

1245 Broadway is an award-winning 23-story class-A office building at the corner of 31st Street and Broadway in NoMAD, one of New York City’s most dynamic neighborhoods. Designed by Skidmore, Owings & Merrill and developed by GDSNY, the building features architectural cast-in-place concrete, large triple-glazed windows, a private club, F&B catering to tenant floors, and panoramic views of the city. It has received LEED-Gold certification and offers the latest touchless technology and air quality.

The financing qualifies as pbb’s first Green Loan in the United States, having launched the product in this region at the start of the year. With these loans, pbb finances for its customers the purchase or recapitalization of commercial properties that meet strict environmental criteria and investments in the sustainability of existing properties. For this purpose, the bank has developed a proprietary scoring model that considers ten criteria in the three categories “energy efficiency,” building certification,” and “other sustainability factors.” 1245 Broadway scored high in all categories.

“1245 Broadway has quickly gained a reputation as one of Manhattan’s environmentally sustainable trophy office buildings, and our organization is pleased to be playing a role in its continued success,” commented Andrew Fleming of pbb.

The financing for the asset was secured by Newmark’s Co-Heads of Debt & Structured Finance, Jordan Roeschlaub and Dustin Stolly, along with Nick Scribani and Issa Abbasi.

“Class A+ institutionally-owned office product, irrespective of the difficult capital markets environment, continues to attract backing from world-class capital like pbb,” said Stolly. “We’re looking forward to seeing this new partnership succeed by bringing ownership’s vision of the newly constructed property into fruition.”

Due to its iconic design and careful positioning, 1245 Broadway has already become known as Manhattan’s premier film, media, technology and creative arts headquarters. Notable tenants include A24 Films (currently nominated for 17 Oscars in 2023), the TV production company 101 Studios (owner of the Yellowstone franchise), international gaming designers Avalanche Studios, global digital advertising firm GumGum, and Wonderview Studios, a film and TV production company.