Newmark Facilitates $450M Refinancing for Texas Tower, Trophy Class A Office High-Rise

Core Insights - Newmark has secured a $450 million refinancing loan for Texas Tower, a prominent office skyscraper in Houston, Texas, marking a significant achievement in the commercial real estate market [1][2] - The refinancing is notable as it is the first multi-tenant office tower outside of New York City financed in the CMBS single-asset, single-borrower market in two years, indicating a strong recovery in investor interest [2] - Texas Tower, which spans 1.2 million square feet and is 95% leased, has seen over 500,000 square feet of leasing activity in the past year, reflecting robust demand and high rental rates [2][3] Financing Details - The financing package was assembled by Newmark's team, including key figures such as Jordan Roeschlaub and Jonathan Firestone, and was funded by Wells Fargo and Morgan Stanley [1][2] - The AAA-rated bonds associated with the refinancing were nearly five times oversubscribed, with lower tranches experiencing demand exceeding supply by as much as 20 times, leading to favorable loan terms [2] Property Features - Texas Tower offers a state-of-the-art tenant experience with amenities designed to enhance productivity, including a hospitality-inspired lobby, green spaces, a rooftop garden, and a modern fitness center [3] - The property is strategically located, providing tenants with easy access to restaurants, entertainment venues, and residential options [3] Awards and Recognition - Since its opening, Texas Tower has received multiple awards, including the 2023 Texas Society of Architects Award and LEED® Platinum certification, highlighting its excellence in design and sustainability [4] Company Overview - Newmark Group, Inc. is a leading player in commercial real estate, providing a comprehensive suite of services tailored to various clients, and generated nearly$ 2.8 billion in revenues for the year ending December 31, 2024 [5]