Chetrit Organization is now hoping it can leave behind the troubles at its 65 Broadway office property. The New York-based firm has extended the $151.5 million commercial mortgage-backed securities (CMBS) loan that applies to the Lower Manhattan asset for three years.
The Commercial Observer reported the deal and said that the debt is split between the CF 2019-CF1, which includes a $96 million B note and a $40 million A1 note, along with the MSC 2019-H6, which consists of a $15.2 million A2 note.
The loan hit special transferring in February 2024 after occupancy plunged from the loss of tenants, including New York Cares and Great American Insurance, according to the CO. That was ahead of the August 2024 maturity date. This new deal took two years of negotiations, according to CO.
Michael Chetrit, principal of Chetrit, told the news outlet that the company believes in a "positive future for this asset going forward.”
According to CompStak, some tenants that operate at the 21-story property include ResCare Workforce Services, NYC Stem Club and Empire Staffing. The building spans 355,000 square feet.
The restructuring was negotiated by the special servicer (CW Capital), Iron Houng Management and the CMBS trust.
While Manhattan has seen a strong office recovery since the pandemic, November showed clear signs of slowing down on the leasing front. The 2.99 million square feet in total signings marked a 17.9 percent plunge month-over-month or a drop of nearly an eighth when put in a year-over-year comparison, according to the latest market report from Colliers. Downtown was the hardest hit submarket in November, with signings getting cut nearly in half month-over-month to 356,553 square feet. Yet, Manhattan remains on track for its best leasing year since 2019, according to Colliers.
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