According to Friday’s Commercial Mortgage Alert issue, real estate developer Sheldon Solow struck a deal with J.P. Morgan to refinance a $1.2 billion fixed-rate CMBS loan against the 1.7 million square-foot Solow Building.
Solow is expected to use the new financing to pay down an existing CMBS mortgage on the iconic Manhattan skyscraper, the $625 million 9 West 57th Street note. The 5-year loan matures in February 2017. The new loan will have a 10-year term structure and a coupon rate of 2.85%.
The office tower houses high-profile tenants such as Kohlberg Kravis Roberts & Co., Chanel, and Apollo Management Holdings. Despite lower historical occupancy levels, the building has been able to rake in high DSCR values. DSCR for the first quarter of 2016 topped 4.34x at just 65% occupancy. At securitization in 2012, the Solow Building was appraised for $2.5 billion, giving the loan a relatively low LTV of 24.80%.
Compliments of Trepp – a member of the EACCNY