Member News, News

Grace Building Obtains Refinancing

According to Friday’s Commercial Mortgage Alert, Brookfield has obtained a $900 million loan on the Grace Building in Manhattan. Part of the loan will go to pay down the $343.5 million in CMBS debt currently outstanding on the office building. There are four senior pieces across three 2004 vintage deals, as well as one B note held outside of the trusts. The loans are open to prepayment and due to mature this July.

The loan breaks down as follows:

-$105.5 million piece in JPMCC 2004-CB9 (21.7%)

-$105.5 million piece in LBUBS 2004-C8 (22.6%)

-$51.7 million and $53.8 million pieces in MSC 2004-T15 (30%)

-$27.0 million B note

The Grace Building is a 1.5 million square-foot office building across from Bryant Park just down the block from Grand Central Terminal in Manhattan. Through the first six months of 2013, DSCR registered 2.06x on 86% occupancy. CMA points to a current occupancy of 93% and lease increases as basis for an expected NOI of $81.9 million next year. A 2004 appraisal valued the building at $635 million, but recent estimates put the value closer to $1.4 billion.

Potential for More Available Space in New York’s Sixth Avenue Corridor

According to a report in the Commercial Observer on Friday, Time Inc. could be leaving its current location at 1271 Avenue of the Americas. We’ve written about many comings and goings around the Sixth Avenue corridor before, so this move has the potential to add another big chunk of space to that submarket. The possible destination for the firm is said to be 225 Liberty Street in Brookfield Place but, no lease has been signed according to the story.

Compliments of EACCNY Member Trepp, LLC.