Tishman Speyer Puts in $20M to Secure Jacx Loan Extension

After requesting special servicing, Tishman Speyer secured an extension of its loan backing the Jacx in Long Island City. The developer needed to put extra equity into the property as a prerequisite, though.

Tishman negotiated a three-year extension of the debt behind the pair of 26-story office buildings in Queens, according to Bisnow, including a one-and-a-half year option. The extension was disclosed by Morningstar Credit Analytics.

To secure the extension, Tishman put in $20 million of additional equity. There was also a blow to the property’s appraised value, which dropped from $860 million in 2021 all the way to $480 million.

The extension has not yet closed and is subject to achieving certain debt yield metrics.

“Our success in quickly completing a multi-year extension, ahead of our loan’s maturity, speaks to the quality of the JACX development and the continued strength of the surrounding Long Island City neighborhood,” a spokesperson for the developer said.

The debt was set to mature in September and Morningstar previously predicted refinancing it “would be challenging” due to its vast vacancy. Tishman owned the special servicing decision made this winter, saying it requested the move “to facilitate a mutually beneficial extension agreement.”

The two-building complex, which opened fully leased in 2019, cost Tishman about $650 million to develop. In 2021, the developer refinanced the 1.2 million-square-foot office and retail development with a $425 million CMBS loan originated by Bank of America.

The largest tenant at 28-07 Jackson Avenue, Macy’s, leased 54 percent of the property, but never moved in after the pandemic and has been looking to sublet its space. It does continue to pay approximately $50 per square foot in rent for its 600,000-square-foot footprint, but it can take off at least part of its obligations as soon as 2029.

WeWork was another major tenant, before the co-working company went bankrupt and abandoned its lease for 20 percent of the property’s space. Tishman replaced WeWork with its own co-working brand.

The Jacx also features an underground parking garage, 47,000 square feet of retail, a one-acre, landscaped terrace and an enclosed pavilion. The development is located atop the Queens Plaza subway station.

— Holden Walter-Warner