These were the largest Manhattan real estate loans in November

$1.25B CMBS loan for Grace Building accounted for over half of Top 10 volume

New York /
Dec.December 11, 2020 07:00 AM
From left: The Grace Building, 250 West 57th Street, 32-42 Broadway, and One Union Square South (Photos via Wikipedia Commons, ESRT, Google Maps, and StreetEasy)

From left: The Grace Building, 250 West 57th Street, 32-42 Broadway, and One Union Square South (Photos via Wikipedia Commons, ESRT, Google Maps, and StreetEasy)

The 10 largest Manhattan loans recorded in November totaled $2.12 billion, a 16 percent increase from October’s total.

More than half of that sum came from a single massive loan: a $1.25 billion refinancing of the 49-story Grace Building north of Bryant Park, which came in the form of a single-asset/single-borrower commercial mortgage-backed security transaction.

The market for such SASB CMBS deals has lately benefited from “pullback by competing insurers and banks that often lend to trophy properties and high quality portfolios,” according to a recent Kroll report on the CMBS market. October’s second-largest loan and September’s largest loan were also SASB deals.

Here are the borough’s largest real estate loans for October:

1) Saving Grace – $1.25 billion

Brookfield Property Partners and Swig Company refinanced the Grace Building at 1114 Sixth Avenue with a $1.25 billion loan from Bank of America, JPMorgan Chase, Credit Suisse and Deutsche Bank. San Francisco-based Swig developed the 1.56 million-square-foot property in 1974, while Brookfield acquired its stake in 2006 as part of its acquisition of Trizec Properties. The firms also own the leasehold on neighboring 1100 Sixth Avenue, and Bank of America is the largest tenant at both properties.

2) Empire State of mind – $180 million

Morgan Stanley provided a $180 million CMBS loan to Empire State Realty Trust to refinance the 26-story office property at 250 West 57th Street in Midtown, which was previously unencumbered by debt. A piece of that loan has been included in the CMBS conduit deal known as BANK 2020-BNK29, in which it is the largest piece. Tenants at the 544,000-square-foot property include the American Society of Composers, Authors and Publishers, TJ Maxx and Concord Music.

3) Cammeby’s cash – $125 million

Cammeby’s International landed a $125 million refinancing from Citigroup for the two-building office complex at 32-42 Broadway in the Financial District, replacing a $117 million loan provided by New York Community Bank in 2015. The 502,000-square-foot property, which Cammeby’s acquired in 2000, is 87.5 percent leased to tenants like New York City’s Board of Elections and Department of Consumer Affairs, according to Commercial Real Estate Direct.

4) Río de la Plata – $120 million

Argentinian firm Raghsa Real Estate borrowed $120 million from Wells Fargo for its acquisition of the residential rental portion of One Union Square South, a 240-unit mixed-use building developed by Related Companies in 1998. New York-based MKF Realty purchased the property on behalf of Raghsa and will manage it. Both MKF and Raghsa are run by members of the Khafif family.

5) Moinian mortgage – $112 million

Morris Moinian’s Fortuna Realty Group secured a $112 million construction loan from Goldman Sachs for a hotel development at 19 West 38th Street in the Garment District, including a $17 million project loan and a $37 million building loan. In 2016, the developer filed plans for a 299-key, 27-story hotel on the site, according to PincusCo.

6) Thorclosure – $82 million

Wells Fargo provided a $82.2 million loan to SL Green for 590 Fifth Avenue, an office and retail property which the landlord acquired through foreclosure on a $25 million mezzanine note. The prior owner, Thor Equities, had tried to reposition the building’s store space into a flagship retail opportunity but was not successful. Several tenants at the 19-story, 100,000-square-foot building, including Knotel, had stopped paying rent amid the pandemic.

7) Hong Kong hotel – $70 million

Hong Kong-based Keck Seng Investments refinanced the Sofitel Hotel at 45 West 44th Street near Grand Central with a $70 million loan from Singapore’s DBS Bank. The new debt replaces a $135 million loan provided by Citibank in 2014, when Keck Seng acquired the 398-room hotel from Accor Group, Goldman Sachs and GEM Realty Capital for $257 million. The hotel temporarily closed and laid off 85 employees in March, due to the coronavirus.

8) Dell development debt – $63 million

MSD Partners, Michael Dell‘s private investment firm, provided a $63 million construction loan to Adam America for a condo project at 2503-2509 Broadway. The new financing includes a $38 million building loan and a $25 million project loan. MSD previously provided a $35 million loan for the site, with the option to take an equity stake later on. The mixed-used project will include 44 residential units and a golf simulator room, according to filings with the Department of Buildings.

9) Guild gold, pt. 2 – $62 million
10) Guild gold, pt. 3 – $53 million

Affordable housing nonprofit Grand Street Guild, which secured a $55.9 million refinancing from Orix Real Estate Capital for 460 Grand Street in October — Guild gold, pt. 1 — secured two more loans from the same lender. The most recent loans are for the remainder of its HUD-sponsored three-tower complex on the Lower East Side — $61.9 million for 410 Grand Street and $52.8 million 131 Broome Street.


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