CIM closes on $400M refi for 1440 Broadway

$300M A-note will be in CMBS deal; $100M B-note held by Oaktree Capital

New York /
Mar.March 05, 2021 05:15 PM
1440 Broadway and CIM Group’s Shaul Kuba (Google Maps, Getty)

1440 Broadway and CIM Group’s Shaul Kuba (Google Maps, Getty)

The commercial mortgage-backed securities market continues to be a big source of refinancings for Manhattan office properties.

CIM Group has secured a $400 million refinancing for the 740,000-square-foot office building at 1440 Broadway near Times Square, Commercial Observer reported. The $300 million A-note is being securitized by JPMorgan into a single-asset CMBS transaction, while a $100 million B-note is held by Oaktree Capital.

CIM acquired the property for $520 million in 2017 as part of New York REIT’s liquidation. According to CMBS rating documents published last week, a majority stake in the 25-story building is owned by QSuper, an Australian pension fund based in the state of Queensland.

The new owners have increased occupancy at the property from 50 percent to 93 percent since acquiring it, with WeWork leasing 236,000 square feet, or about 40 percent of the building. The WeWork space is mostly leased to two Fortune 500 enterprise tenants.

Among other tenants, Macy’s and Mizuho Capital are currently marketing all of their space at 1440 Broadway for sublease, while Kate Spade has already subleased all of its space to two other companies.

The ground-floor retail is anchored by a CVS. A cafe and a Mexican restaurant at the property have been closed due to pandemic.

Rating documents show that the CMBS loan includes $30 million in upfront reserves, most of which is to be used on leasing costs, and the borrowers are required to contribute another $20 million in equity.

[CO] — Kevin Sun


Related Articles

arrow_forward_ios
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
WeWork CEO Adam Neumann (Credit: Getty Images and iStock)
WeWork’s side businesses are fizzling
WeWork’s side businesses are fizzling
Sarah Pontius (Credit: Union College)
Another head rolls at WeWork
Another head rolls at WeWork
1135 Lexington Avenue and Nir Meir (Google Maps, iStock)
Judge rules against Nir Meir in HFZ’s $19M default case
Judge rules against Nir Meir in HFZ’s $19M default case
Eric Adams (Getty, iStock/Illustration by Alexis Manrodt for The Real Deal)
Brooklyn developers, lobbyists funneled money to Eric Adams nonprofit
Brooklyn developers, lobbyists funneled money to Eric Adams nonprofit
The Assemblage occupies the top 13 floors of the building. (Prodigy, Assemblage)
Prodigy-backed co-working facility facing foreclosure
Prodigy-backed co-working facility facing foreclosure
TIG founding principal Elliott Ingerman and the Textile Building at 295 Fifth Avenue (LinkedIn, Google Maps)
Fifth Avenue’s Textile Building to get $350M makeover
Fifth Avenue’s Textile Building to get $350M makeover
(Tropicana Las  Vegas via Facebook, Bally's Corp)
Bally’s buys Las Vegas’ Tropicana casino for $150M
Bally’s buys Las Vegas’ Tropicana casino for $150M
arrow_forward_ios

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

Loading...