#United States #Houston #Newmark #Texas Tower

Newmark Secures $450 Million Refinancing for Texas Tower

In a significant financial move, Newmark has successfully facilitated a $450 million refinancing loan for the Texas Tower, an esteemed 47-story office skyscraper located in Houston, Texas. The firm’s accomplishment marks a crucial milestone in the commercial real estate sector, signaling a surge in investor interest and confidence in multi-tenant office buildings outside of major markets like New York City.

A Notable Achievement in Commercial Real Estate

The refinancing deal, secured by Newmark's team consisting of prominent figures such as Global Debt Co-Heads Jordan Roeschlaub and Jonathan Firestone, along with Vice Chairmen Clint Frease and Blake Thompson, showcases their expertise in navigating complex financial landscapes. They collaborated closely with leading financial institutions, Wells Fargo and Morgan Stanley, to assemble a compelling financing package for the property’s owners, Hines and Ivanhoé Cambridge, a subsidiary of CDPQ.

Jordan Roeschlaub emphasized, “The refinancing for this award-winning property was particularly notable as it marked the first time in two years that a multi-tenant office tower outside of New York City was financed in the CMBS single-asset, single-borrower market.” This pioneering effort reflects Newmark’s adeptness in addressing the challenges within the commercial mortgage-backed securities space and underscores the rising demand from investors in today’s market.

Exceptional Demand and Attractive Loan Terms

The refinancing was met with remarkable investor enthusiasm, evidenced by AAA-rated bonds nearly five times over-subscribed, while lower tranches saw demand exceed supply by as much as 20 times. This significant interest resulted in tighter pricing, ultimately leading to loan terms that not only met but exceeded the expectations of all stakeholders involved.

Texas Tower: A Beacon of Success and Innovation

Completed in 2021, the Texas Tower boasts an impressive 1.2 million square feet of space and has maintained a high occupancy rate of 95%. Over the past year, the property has successfully leased over 500,000 square feet, indicating a robust and thriving commercial environment. Among its tenants are notable firms such as Vinson & Elkins, Morgan Stanley, Cheniere Energy, Inc., and Clifford Chance, underscoring the tower's prestige within Houston's corporate landscape.

Situated at 845 Texas Avenue, the Texas Tower is designed as a cutting-edge hub aimed at fostering productivity for its occupants. The skyscraper features a hospitality-inspired lobby, lush green spaces, and a plethora of sought-after amenities including a rooftop garden, a high-tech conference center, and a modern fitness facility equipped with class spaces. Moreover, its strategic location offers tenants seamless access to an array of restaurants, entertainment options, and newly developed residential areas, creating an attractive environment for business.

Award-Winning Design and Recognition

Since its inauguration, Texas Tower has garnered numerous accolades and certifications recognizing its architectural excellence and eco-friendly design. These honors include the coveted 2023 Texas Society of Architects Award, the Houston Business Journal Landmark Award, as well as achieving LEED® Platinum, WiredScore Platinum, and WELL Platinum™ Building Standards, illustrating its commitment to sustainability and quality.

About Newmark

Newmark Group, Inc. (Nasdaq: NMRK) is an industry-leading provider of commercial real estate services, facilitating every phase of the property lifecycle. With nearly $2.8 billion in revenue for the twelve months ending December 31, 2024, Newmark operates approximately 170 offices globally, employing over 8,000 professionals. This broad reach enables them to deliver tailored services that meet the diverse needs of owners, tenants, investors, and burgeoning businesses alike.

In conclusion, the successful refinancing of Texas Tower not only reflects Newmark's prowess within the commercial real estate domain but also highlights the revitalizing trends within the Houston market, paving the way for sustained growth and investment in the region's skyscraper scene.