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
The Promenade on the Peninsula in Rolling Hills Estates, California (Google Maps, iStock)
Landlords take on short-term debt to spruce up struggling assets
Landlords take on short-term debt to spruce up struggling assets
Crystal Mall in Waterford, Connecticut  (Crystal Mall via Facebook, Getty)
Simon’s Connecticut mall valuation slashed by 88%
Simon’s Connecticut mall valuation slashed by 88%
Acore Partner Warren de Haan. (Acore, Getty)
Acore Capital raises $1B to provide rescue cash to hotels
Acore Capital raises $1B to provide rescue cash to hotels
TRD Tips: How to manage when you’re a landlord late on the loan
TRD Tips: How to manage when you’re a landlord late on the loan
TRD Tips: How to manage when you’re a landlord late on the loan
Simon Property Group CEO David Simon and Town Center at Cobb Mall (Getty, Google Maps, iStock/Illustration by Alexis Manrodt for The Real Deal)
A Simon mall falls to foreclosure
A Simon mall falls to foreclosure
Photo Illustration of Blackstone's Jonathan Gray (Getty; iStock/Illustration by Kevin Rebong for The Real Deal)
How Blackstone’s Jon Gray undercut his UK counterpart
How Blackstone’s Jon Gray undercut his UK counterpart
Photo Illustration of BioMed Realty CEO Tim Schoen and Alexandria Real Estate Equities CEO Joel S Marcus. (Getty, BioMed)
Life sciences boom continues with 36M sf in works
Life sciences boom continues with 36M sf in works
From left: Flex’s Shragie Lichtenstein; Piñata’s Lily Liu; NestEgg’s Eachan Fletcher; and Till’s David Sullivan
These startups want to guarantee your rent
These startups want to guarantee your rent
arrow_forward_ios

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

Loading...