TRD Insights: This is what office tenants are paying to lease up 55 Hudson Yards

CMBS loan documents provide insight into office tower’s rent roll

New York Insights /
Jun.June 17, 2020 09:00 AM
Point72's Steven Cohen, Third Point's Daniel Loeb,  55 Hudson Yards and Facebook’s Mark Zuckerberg (Getty)

Point72’s Steven Cohen, Third Point’s Daniel Loeb,  55 Hudson Yards and Facebook’s Mark Zuckerberg (Getty)

Just a few months before apparently souring on the concept of physical office space, Facebook was the latest high profile office tenant to sign on for Related’s Hudson Yards megadevelopment, taking up a total of 1.5 million square feet at 30, 50 and 55 Hudson Yards.

Months later, in the early days of coronavirus’ rapid spread in New York City, one of Facebook’s new neighbors at 55 Hudson Yards — Steve Cohen’s Point72 Asset Management — revealed that an employee had contracted the disease, sparking concern among other tenants.

Documents associated with last year’s $1.2 billion CMBS financing of 55 Hudson Yards — which is 90-percent owned by Japan’s Mitsui Fudosan — provide a detailed look at the 51-story office tower’s rent roll. They also reveal information not often readily available for other office properties, or other parts of Hudson Yards’ complex financing.

The bulk of the new financing was first included in an $810.5 million single-asset CMBS deal last November, while remaining pieces have been packaged into a number of other deals, the most recent of which was the $617.9 million BANK 2020-BNK27.

“The majority of tenants have their employees working remotely, while the building remains open with only security and essential staff on site,” a Kroll report on the latest CMBS deal says of the property. The vast majority of tenants have paid their rent in full.

Here’s a rundown of the top 10 tenants at the property:

Top 10 Tenants at 55 Hudson Yards

#Tenant FloorsExpirationBase Rent ($000's)% of Total Base RentSF% of Total SFBase Rent / SFTenant Industry
1Point723 - 142034$29,36521.90%332,28323.20%$88.37Financial Services
2Milbank, Tweed, Hadley & McCloy30 - 392034$24,04117.90%287,33320.10%$83.67Legal
3Cooley42 - 462039$15,06111.20%146,22710.20%$103.00Legal
4Third Point49 - 512029$11,5768.60%89,0436.20%$130.00Financial Services
5Boies, Schiller & Flexner18 - 212035$9,1356.80%110,7327.70%$82.50Legal
6MarketAxess15 - 172034$7,7055.70%83,2985.80%$92.50Financial Services
7Facebook24 - 252024$6,5964.90%56,8584.00%$116.01IT Service
8Silver Lake Technology40 - 412034$5,9544.40%58,0894.10%$102.50Financial Services
9Cognizant26 - 272031$5,9344.40%57,2574.00%$103.64IT Service
10Stonepeak482029$4,0073.00%29,6832.10%$134.99Financial Services
Top Ten Tenants$119,37489.00%1,250,80387.40%$95.44
Total$134,147100%1,431,212100%$93.73

SOURCE: Kroll Bond Rating Agency


Related Articles

arrow_forward_ios
Issuance of single-asset/single-borrower (SASB) loans is likely to increase in 2021. Major assets like One Manhattan West, Hudson Pacific’s Hollywood studio portfolio, and the MGM Grand & Mandalay Bay were financed with SASB deals this year. (Photos via SOM, Shimahara Illustration, and iStock)

Here’s what 2021 has in store for the CMBS market

Here’s what 2021 has in store for the CMBS market
11 Penn Plaza and Apple CEO Tim Cook (VNO; Getty)

Apple snags more space at Vornado’s 11 Penn Plaza

Apple snags more space at Vornado’s 11 Penn Plaza
(iStock)

What doom-and-gloom forecasts miss about the office market

What doom-and-gloom forecasts miss about the office market
From top: Park Place Mall in Tucson, AZ with Brookfield Property Partners CEO Brian Kingston; Westfield Countryside in Clearwater, FL with Unibail-Rodamco-Westfield CEO Christophe Cuvillier; and The Mall at Tuttle Crossing in Dublin, OH with Simon Property Group CEO David Simon (Google Maps, Westfield, Simon, Getty)

These are the biggest malls landlords ready to hand over to CMBS lenders

These are the biggest malls landlords ready to hand over to CMBS lenders
The Grace Building at 1114 Sixth Avenue (Photo via Wikipedia Commons)

Here’s what tenants are paying at Brookfield & Swig’s Grace Building

Here’s what tenants are paying at Brookfield & Swig’s Grace Building
(Simone Golob/Getty)

Workers in prime earning years are struggling to pay rent: Survey

Workers in prime earning years are struggling to pay rent: Survey
Hotels in trouble: the Hilton Houston Post Oak (left) saw its value cut in half and is in foreclosure, and the Residence Inn Arlington Pentagon City is set to be torn down and turned into part of Amazon’s HQ2. (Photos via Hilton; Marriott; iStock)

Here are the markets where hotels are hurting the most

Here are the markets where hotels are hurting the most
Silvercup Studios in Long Island City, NY (Getty)

The rise of soundstage real estate, by the numbers

The rise of soundstage real estate, by the numbers
arrow_forward_ios

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

Loading...