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New Metropolitan Life Loan to Defease Manhattan Office Loan

According to an article from Commercial Real Estate Direct, Metropolitan Life Insurance Co. has provided a loan for 255 Greenwich St. for $145 million. The loan will defease an $85 million mortgage that makes up 5.04% of MSC 2006-IQ12. With a scheduled maturity date in October 2016, the loan is currently in prepayment lockout until July of next year.

Formerly known as 75 Park Place until the name was changed to 255 Greenwich St. three years ago, the building is a 14-story, 623,748 square-foot office located next to the World Trade Center in Manhattan that was built in 1987. At the moment, the property’s main tenants are the City of New York, occupying 32.66% of the space, and the City of NY Real Estate, with 31.94%. The property boasts high occupancy and DSCR levels of 97% and 2.62x, respectively.

The loan is the third largest in MSC 2006-IQ12. Thus far, the deal has taken close to 9.60% in cumulative bond losses to date. The upcoming defeasance will bring total defeased loans to over 8%.

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