Citigroup is set to provide a $300 million commercial mortgage-backed securities loan to real estate investment firm Haymes Investment for its Midtown office building at 5 Penn Plaza.
The deal will refinance an existing $203 million CMBS loan on the 24-story property, provided by JPMorgan Chase in 2007, which is due to mature next year. JPMorgan subsequently securitized that mortgage in a CMBS conduit.
While Haymes originally intended to replace the debt on the 631,000-square-foot property with U.S. Treasuries, the family-operated firm decided to stick with the CMBS market, according to the New York Observer. Citigroup is expected to securitize the new 10-year loan, which has yet to close, in the coming weeks.
The office building at 5 Penn Plaza, located on Eighth Avenue between West 33rd and West 34th streets, is 98.5 percent leased with office tenants including Sirius XM Radio and the Visiting Nurse Service of New York. It also serves as Haymes’ headquarters.
The property holds more than 26,000 square feet of retail space, with CVS Pharmacy serving as one of the ground-floor retail tenants. [NYO] – Rey Mashayekhi