Jeff Sutton pays down debt at 720 Fifth to $255M, from $305M

By Adam Pincus

Jeff Sutton, president of Wharton Properties, reduced the debt on the Plaza District retail and office building 720 Fifth Avenue to $255 million, city records show. The lender is JPMorgan Chase Bank. This first mortgage debt is down from a high of $400 million borrowed in 2016. That loan was initially paid down to $305 million in early 2020 and in the latest loan filing has come down to $255 million.

Fast-fashion brand Abercrombie & Fitch occupies the retail portion of the building. Sutton declined to comment.

Even with the debt reduction, the property value remains far above the 2006 purchase price. Sutton first acquired an interest in the property in 2004 when he signed a 30-year ground lease, then in 2006 bought the building for $153 million, financed with a $165 million loan from Column Financial and $35 million mezzanine loan from SL Green Realty. In 2018, Sutton paid back SL Green, which had a stake in the property, and took over 100 percent interest.

In 2016, JPMorgan provided a $400 million first mortgage loan, which added $235 million in a gap loan to the then existing $165 million debt.

The new refinance deal closed on May 25, 2021 and was recorded on June 5, 2021. The property has 113,292 square feet of built space according to PincusCo analysis of city data.

The signatory for Jeff Sutton and Wharton Properties was Jeff Sutton. The borrower entity was 720 Fifth Sub A LLC.

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