American Real Estate Partners (AREP) has secured a four-year extension on its $162.5 million loan for 1600 Market St., safeguarding the property’s financial stability amid office market challenges. The loan, now extended to 2028, involved senior lenders Natixis Corporate and Investment Banking, BlackRock, and mezzanine lender JPMorgan Chase.
The 39-story, 825,968-square-foot tower, 70% occupied, was purchased by AREP in 2018 for $160 million from Equity Commonwealth. AREP invested $15 million in upgrades, including improvements to the entrance, lobby, air quality, and fitness center.
As part of the extension, AREP committed to a “significant additional equity investment” to fund tenant improvements and attract new occupants. This extension marks a key achievement, especially as lenders reduce office loan exposure.
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