Sale of delinquent Midtown mortgage shows 2007 prices back

Property valuations approaching pre-crash levels

New York /
Jun.June 02, 2014 11:40 AM

The sale of a $160 million commercial mortgage security secured by a single Midtown office tower earlier this year provides another sign that property values are recovering to pre-crash levels.

Blackstone Group purchased the mortgage tied to 119 West 40th Street for $165.7 million, roughly the same price the original joint venture bought the tower for in 2007.

It’s one of New York’s large delinquent commercial loans that has been in default for a while, Joe McBride, research analyst at Trepp, told the Wall Street Journal.

“Seeing it get sold for as much as it did is a good sign,” said McBride.

Blackstone sees the price as a “sizable discount” considering the property’s location near Bryant Park, Frank Cohen, a partner in the firm’s real estate investment group, told the Journal. Blackstone has invested in a number of properties in the area, Including 1095 Sixth Avenue, the site of a future Whole Foods.

Blackstone’s purchase of the CMBS also helps reduce the total value of the city’s delinquent CMBS loans, the Journal reports.

The market for commercial mortgage backed-securities tied to a single building in New York accelerated last year, helping to drive total CMBS generation in New York to $12 billion. [WSJ]Tom DiChristopher


Related Articles

arrow_forward_ios
Blackstone Group's Stephen Schwarzman, KKR's Henry Kravis and Apollo's Leon Black (Getty, Facebook, iStock)
Blackstone, Apollo, KKR take market hit on Evergrande tumult
Blackstone, Apollo, KKR take market hit on Evergrande tumult
Avison Young acquires Singer & Bassuk Organization
Avison Young acquires Singer & Bassuk Organization
Avison Young acquires Singer & Bassuk Organization
1223 East New York Avenue with Carlyle Group's Jason Hart (Google Maps, Carlyle Group)
Carlyle Group scores $32M construction loan for Crown Heights storage facility
Carlyle Group scores $32M construction loan for Crown Heights storage facility
LIC developer secures $56M construction loan for stalled mixed-use project
LIC developer secures $56M construction loan for stalled project
LIC developer secures $56M construction loan for stalled project
The Cosmopolitan of Las Vegas at 3708 Las Vegas Blvd S and Blackstone CEO Stephen Schwarzman (Google Maps, Getty)
Blackstone marketing Cosmopolitan Las Vegas for $5B
Blackstone marketing Cosmopolitan Las Vegas for $5B
From left: TF Cornerstone president Fredrick Elghanayan with 595 Dean Street and Chetrit Group’s Joe Chetrit with 152-09 88th Avenue, Jamaica (TF Cornerstone, MOSO Studio, Getty, StreetEasy)
TF Cornerstone’s $337M loan in Bklyn tops outer-boro list
TF Cornerstone’s $337M loan in Bklyn tops outer-boro list
Clockwsie from top left: Aby Rosen with 980 Madison Avenue, 258-278 Eighth Avenue, 1 West Street and 511 Lexington Avenue (RFR, JJ Operating, Google Maps)
These were the largest Manhattan real estate loans in July
These were the largest Manhattan real estate loans in July
Photo illustration of the Hyatt Regency hotel in New Orleans (Hyatt, iStock)
Hurricane Ida threatens $7B of CMBS
Hurricane Ida threatens $7B of CMBS
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...