The two largest CMBS loans backed by Manhattan office buildings—both of them venerable Park Avenue trophies—to end up on Trepp's "watch list" this year have successfully negotiated their way to extended financial packages.
Tishman Speyer has secured a one-year extension—with a one-year extension option—for a $485M CMBS loan backed by 300 Park Avenue, a 26-story building dating to 1955.
The 10-year loan was originated by German American Capital Corp. in 2013 at a fixed rate of 4.41% when the office property was valued at $1B, Trepp reported.
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The loan went to special servicing earlier this year. Tishman Speyer said it requested the transfer to special servicing, citing a "credit market dislocation." The company said that it expected to work out an extension in advance of the loan's due date in August.
Green Loan Services, an arm of SL Green, was the special servicer that negotiated the extension.
"Our ability to secure a two-year loan extension is a testament to the market's faith in 300 Park Avenue and Tishman Speyer as a sponsor," said Randall Rothschild, Tishman Speyer's Global Head of Debt, in a statement.
Tishman Speyer said the building is 97% leased, including 195K SF of leases, renewals and expansions during the past two years.
Tishman's $485M loan was the second-largest CMBS package coming due this year on Trepp's watch list. The largest, a $783M loan that came due in May, was backed by one of the highest-profile office buildings in Manhattan.
Last month, RFR Realty reached a deal for a multi-year extension of a $1B debt package, including a $783M CMBS loan, on the landmark 831K SF office tower at 375 Park Avenue—a.k.a. the Seagram Building—in a modified package that includes an infusion of equity from RFR.
NYC-based RFR received a one-year extension, with an extra 12-month option. RFR will contribute $15M of equity at closing and another $40M over the next 24 months, according to a Trepp report.
The CMBS package on the Seagram Building loan, which came due in May, was in special servicing with representatives for Midland Loan Servicing and Wells Fargo acting as master and special servicers, respectively, on the $783 million securitized portion of the debt.
RFR Realty acquired the Seagram Building in 2000 for $380M, or $540 per SF. Duetsche Bank and Citibank refinanced debt on the 38-story landmark tower at 375 Park in 2013.
RFR earlier this year was seeking $1.1 billion to refinance the landmarked 38-story tower at 375 Park Avenue with a team at Eastdil Secured. RFR recently completed a $25M renovation, including converting an underground parking garage into a 35K SF amenity space.
Still on Trepp's watch list is a $750M loan for The Stahl Organization's tower at 277 Park Ave. The loan comes due in August 2024, which is when the building's anchor tenant, JPMorgan Chase, relocates to its new HQ tower.
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