Law Firm Relocating in NYC

According to a story in Crain’s New York a few days ago, the law firm Reed Smith is in talks to become the anchor tenant at the new development at 7 Bryant Park in Midtown Manhattan. Reed Smith currently occupies about 15% of 599 Lexington Avenue, an office building in Midtown East that backs $750 million in CMBS debt. That debt is split pari-passu across three deals: A $225 million loan in JPMCC 2007-CB19 (8.3% of the deal), a $225 million piece in JPMCC 2007-LDPX (6.1% of the deal), and a $300 million piece in CSMC 2007-C2 (11.3% of the deal).

If and when the new lease is signed, Reed Smith would relocate from 599 Lexington Avenue to the Bryant Park building, which is scheduled for completion in 2015. Reed Smith’s current lease runs until October 2017. The property at 599 Lexington Avenue is a 1.1 million square-foot office building that was appraised for $1 billion in 2007. The most recent financials are from the first half of 2012 and put occupancy at 98% and DSCR at 1.18x. The loan is current and due to mature in March 2017.

On a related note, we found the Reed Smith story after reading Steve Cuozzo’s weekly commercial real estate column in the New York Post. This week’s column provides a long list of big tenants that have committed to leaving the Grand Central Terminal/Midtown area over the last year (“East Midtown Loses Its Luster“).

Compliments of Trepp, LLC – A EACCNY Member