AREP Completes Successful Loan Extension and Future Lease Funding Line Increase for 1600 Market Street

American Real Estate Partners (AREP) today announced the successful completion of a 4-year loan extension for its 1600 Market Street property. As part of the extension, AREP now has access to an increased future lease funding line for the property, thus ensuring the full capitalization of the asset and securing the necessary funding to continue its repositioning efforts. The extension was achieved through a complex structure involving senior lenders Natixis Corporate & Investment Banking (Natixis CIB) and BlackRock, along with mezzanine lender JPMorgan, extending the property’s loan maturity and reinforcing the long-term viability of the building.

As part of the extension, AREP made a significant additional equity investment in 1600 Market Street, underscoring the firm’s commitment to the property. This commitment was integral to securing a 4-year extension, which is not subject to any extension hurdles. This makes the property uniquely positioned in the Philadelphia market to be the building of choice for high-quality tenants seeking a building with stable ownership and financing.

"This loan extension is a significant milestone for 1600 Market and highlights the strength and potential of the property,” said Brian Katz, Co-Founder and President of AREP. “With full capitalization now in place, we are poised to continue executing our vision for the building, leveraging its prime location and superior amenities to continue to attract high-quality tenants.”

‍Peter Bayard, Managing Director at Natixis CIB, added, “We are proud to continue our partnership with AREP, whose strategic approach to the repositioning of 1600 Market has been instrumental in driving the property’s success. This modification reinforces our confidence in the asset’s future and the ongoing collaboration with AREP to ensure the long-term stability of the building.”

The loan extension reinforces AREP’s ability to navigate today’s complex commercial real estate landscape and provides a solid foundation for continued leasing momentum at 1600 Market, which underscores the strength and desirability of the property and reflects the market's confidence in its repositioning and the strategic improvements made to the asset.

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