NEW YORK - DEVELOPERS of one of the city's tallest new skyscrapers said on Friday they had lined up a nearly US$1.3 billion (S$1.89 billion) loan, sealing what experts called one of the biggest real estate financing deals since the economic crisis began last fall.

Coming amid the worst commercial real estate market in decades, the refinancing package for the Bank of America tower drew congratulations from Mayor Michael Bloomberg and Governor David Paterson.

The 288-metre tower in midtown Manhattan is partially occupied and is set to be finished next year.

The glass-covered skyscraper boasts a prominent location off Bryant Park and a roster of green features that drew Al Gore's environmentally friendly investment firm.

The building's developer, The Durst Organization, says 98 per cent of it has been leased - about 80 per cent to Bank of America Corp.

Despite those attributes, it took about nine months to line up the new financing, Durst spokesman Jordan Barowitz said. The money will pay off a construction loan that came due last month and finance the remaining work, among other things, he said.

About half the new loan for the Bank of America tower comes from the bank itself, Mr Barowitz said. The Charlotte, North Carolina-based bank declined to comment on the refinancing. Four other banks also are involved.

The project's original financing included US$650 million in tax-exempt bonds intended to help spur construction in lower Manhattan after the Sept 11, 2001, terrorist attacks. -- AP