The Real Deal New York

AIG writes $30M mortgage post-takeover

October 15, 2008 06:28PM
By Adam Pincus

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Soon after the federal government agreed to back insurance giant American International Group with an $85 billion line of credit, the company financed a $29.75 million mortgage on a parking garage in Battery Park City.

The garage is in an underground space in the 320-unit condominium Riverhouse at One Rockefeller Park, under development by the Sheldrake Organization. (Public records use the address 1-2 River Terrace.)

The garage is a block from the new 43-story Goldman Sachs headquarters under construction at 200 West Street near Vesey Street. Goldman Sachs Group has signed a 20-year lease on the 66,968-square-foot, 369-space garage, with options to renew, according to city documents published today.

The loan from American International Group Annuity Insurance Company, a subsidiary of AIG, was given to 300 Murray Street LLC, an entity affiliated with the developer, and dated September 25, according to the city records.
The bailout of AIG was announced nine days earlier.

Goldman Sachs, which has fared far better than other Wall Street firms such as bankrupt rival Lehman Brothers, and Merrill Lynch — which was bought by Bank of America — has still seen its ratings take a hit. Moody’s, which rates the credit worthiness of companies, last Friday placed a negative outlook on the long-term rating of Goldman Sachs Group, although it remained investment-grade.

Dan Fasulo, managing director of research at Real Capital Analytics in Manhattan, said he was not privy to the deal, but a rough analysis based on the city records appeared to justify the loan amount.

“I think it is a market-[rate] deal. At first glance it seems a little risky, but with Goldman involved in a long-term lease… it changes the nature of the investment for an institution like AIG,” he said.

A spokesman for AIG declined to comment. A spokeswoman for Goldman Sachs did not immediately respond to a request for comment.
 

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