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E&Y Considering Alternative to Times Square Office

According to The Real Deal, Big Four accounting firm Ernst & Young is considering various locations in lower Manhattan and New Jersey to replace its current location at Five Times Square in Manhattan. The firm occupies nearly one million square feet with a lease that is to end in mid-2022.

The 1.1 million square-foot office backs the $1.072 billion Five Times Square loan. Half of the loan is part of the collateral pool for WBCMT 2007-C31. The $536 million slice makes up 13.65% of the collateral for that deal. A second $536 millinon piece is part of WBCMT 2007-C30. That slice makes up 10.58% of the C30 deal.

The property was sold almost two years ago for a price reported to be $1.5 billion. The loan is locked out until early 2017 and the sale did not result in a defeasance. The note matures in March 2017. E&Y occupies over 88% of the office space in the property.

Through the first three months of 2016, DSCR (NCF) and occupancy for the loan clocked in at 1.10x and 100%, respectively.

According to securitization documents E&Y’s base rent is $48.49.


Compliments of TREPP, LLC – A member of the EACC