GFP: We Have Agreement to Extend $103M Loan for DuMont Building
Loan for Art Deco-style DuMont Building on Madison Ave. came due last month.
After GlobeSt. reported yesterday that GFP Real Estate defaulted last month on a $103M CMBS loan on the DuMont Building, a landmark Art Deco-style building at the corner of Madison Avenue and 53rd Street, we got a quick response from GFP, which we’re pleased to share with you:
“We have agreed to terms with our lender and are finalizing documentation to extend the existing loan. We are quite confident that we will be able to repay the loan during this extension,” Jeff Gural, Chairman and Principal of GFP Real Estate told GlobeSt., in a statement.
Built in the same year as the Empire State Building—in the depths of the Great Depression in 1931—the 42-story DuMont building was 84% occupied in December, with its largest tenant a flexible office space provider, according to a report in Crain’s. Memorial Sloan Kettering, another key tenant, is vacating the building in June and relocating to new office space on the Upper East Side.
More than $16B in CMBS loans are coming due for New York City building owners this year, a 30% increase over last year’s $12.7B in mortgage-backed loan maturities, according to Trepp.
A significant part of the increase in loan maturities is due to owners who opted for one-year loan extensions last year. However, analysts warn that lenders are in no mood to accommodate this kind of “pay me now or pay me later” wiggle room in the current financial environment, so extensions may be hard to come by.
CMBS loans coming due this year on two NYC properties made Trepp’s “watch list” of the largest office building loans in the US that are scheduled to mature in 2023—both of them on Park Avenue—375 Park Avenue ($783M) and 300 Park Avenue ($485M).
The loan on the property at 375 Park Avenue—a.k.a. the Seagram Building, owned by RFR Holding—matures in May. According to Trepp the building is 75% occupied. The loan on Tishman Speyer’s office building at 300 Park Ave., which Trepp says is 81% occupied, comes due in August.
Trepp’s watch list also notes that another mega-loan involving a building on Park Avenue—a $750M loan for The Stahl Organization’s tower at 277 Park Ave.—comes due in August 2024, which is when the building’s anchor tenant will be preparing to move into a new tower the nation’s largest bank is building as its new HQ.