One of the positive stories from CMBS in January that we failed to note was the full payoff off the one-time $124 million 70 Hudson Street loan. (There were not many feel-good narratives in January.)
We wrote about this note back in early 2015 with concerns. The 409,272 square-foot, Jersey City office that backed the property was once 100% occupied by Lehman Brothers. After Lehman’s demise, the lease was taken over by Barclays. The lease ended in January 2016 and long before that, Barclays had already announced its plans to leave.
The loan paid off in full in January. According to a NJ.com story last week, 70 Hudson and nearby 90 Hudson were sold to Spear Street Capital of San Francisco. The price tag was said to be $299 million.
The building backed $67.7 million of CMBS debt in LBUBS 2006-C4 before the payoff, comprising 5.25% of that deal’s collateral.
When BNY Mellon announced it would be selling its headquarters and looking for new space in 2014, 70 Hudson was one of two properties on the short list. Ultimately, BNY Mellon chose a Brookfield property in lower Manhattan for its new headquarters, making the loan a source of concern for us at the time.
The property was sold by Gramercy Property Trust. The deal was first announced back in November but only closed last week.
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