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

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

NEW YORK, Feb. 27, 2025 /PRNewswire/ -- Newmark announces the firm has secured a $450 million refinancing loan for Texas Tower, a 47-story trophy office skyscraper in Houston, Texas. Newmark Co-Heads of Global Debt & Structured Finance Jordan Roeschlaub and Jonathan Firestone, Vice Chairmen Clint Frease and Blake Thompson, Managing Director Travis Bailey, Director Peter Mavredakis and Associate Director Tim Polglase assembled the financing package on behalf of owners Hines and Ivanhoé Cambridge, the real estate group of CDPQ. Wells Fargo and Morgan Stanley provided the funding.

"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," said Firestone. "Our team worked closely with the lender to navigate rating agency and appraisal feedback, ultimately driving exceptional investor demand. The AAA-rated bonds were nearly five times oversubscribed, while lower tranches saw demand outstrip supply by as much as 20 times. This overwhelming interest led to pricing tightening significantly, resulting in final loan terms that exceeded expectations and an exceptional result for our clients."

Delivered in 2021, the 1.2 million-square-foot Texas Tower is s 95% leased. More than 500,000 square feet of leasing has taken place over the past year, signaling tremendous momentum at the property, with rents among the highest in Houston. Tenants at the property include Vinson & Elkins, Morgan Stanley, Cheniere Energy, Inc. and Clifford Chance. The tower also serves as Hines's global headquarters.

The property, at 845 Texas Avenue, offers a state-of-the-art tenant experience aimed at maximizing productivity. Conceived as a vertically integrated campus, Texas Tower features a hospitality-inspired lobby, expansive green spaces and a wide range of sought-after tenant amenities including a rooftop garden, high-tech conference center and a modern fitness center with space for classes. Additionally, the property's location provides tenants with immediate access to an array of restaurants, entertainment venues and newly completed residential options.

Since its opening four years ago, Texas Tower has been recognized with numerous awards and certifications, including the 2023 Texas Society of Architects Award, the Houston Business Journal Landmark Award and LEED® Platinum, WiredScore Platinum and WELL Platinum™ Building Standards.

About Newmark
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries ("Newmark"), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark's comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform's global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. For the twelve months ended December 31, 2024, Newmark generated revenues of nearly $2.8 billion. As of December 31, 2024, Newmark and our business partners together operated from approximately 170 offices with more than 8,000 professionals across four continents. To learn more, visit nmrk.com or follow @newmark.

Discussion of Forward-Looking Statements about Newmark
Statements in this document regarding Newmark that are not historical facts are "forward-looking statements" that involve risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements. These include statements about the Company's business, results, financial position, liquidity, and outlook, which may constitute forward-looking statements and are subject to the risk that the actual impact may differ, possibly materially, from what is currently expected. Except as required by law, Newmark undertakes no obligation to update any forward-looking statements. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see Newmark's Securities and Exchange Commission filings, including, but not limited to, the risk factors and Special Note on Forward-Looking Information set forth in these filings and any updates to such risk factors and Special Note on Forward-Looking Information contained in subsequent reports on Form 10-K, Form 10-Q or Form 8-K.

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SOURCE Newmark Group, Inc.