The Lightstone Group will be clearing out 485 Seventh Avenue over the next year for a gut renovation of their newest investment. Crains New York reported that Eretz Group recently sold the building to Lightstone for $200 million. The property is situated between Times Square and Penn Station, a location that Lightstone believes is best suited for a hotel or a high-end office building. Current leases in the building can be terminated within a year to make way for the coming renovations.
The 255,908 square-foot property on Seventh Avenue in Manhattan was built in 1906 and is 16 stories. It was most recently renovated in 1999 and includes a parking garage along the 36th Street side of the building. The garage houses the property’s top tenant, Atrium Parking, with about 15% of the space. The building was most recently valued at $70.7 million at the original loan appraisal in 2005.
The most recent reported occupancy was listed at 83%, but we imagine this measure didn’t matter much to Lightstone and their plan to completely overhaul the building. The loan is under prepayment lockout for five more months, making it seem likely to be defeased. The remaining $51.6 million balance on the 485 Seventh Avenue loan backs 1.8% of the CD 2005-CD1 deal, which matures in September 2015. Twenty-nine loans in the deal have already been defeased.
More on November Losses: Property Type and Loan Size
Last week, Trepp’s November loss analysis showed that disposed loan volume continued to decline but the majority of losses were significant. This was mostly due to a spread of $99.8 million worth of losses across JPMCC 2007-CB19 and a 90% loss on the $95.6 million Oasis Net Leased Portfolio. About 95% of November’s disposed loans experienced losses greater than 2%, well above the 72% that October posted. Today we’ll look at the losses from a different perspective, specifically by property type and loan size.
In the first table below, we break out losses by major property type for all loans in November. The second table eliminates loans with losses of less than 2% of the loan balance, and again allocates losses by major property type.
November Average Loss Severity by Property Type – All Loans
November Average Loss Severity by Property Type – Losses > 2% of Loan Balance
Next we provide a breakdown of loss volume and severity over the last 59 months by loan size. The first table includes all losses while the second only includes losses greater than 2%.
Average Loss Severity by Loan Size for Last 59 Months – All Loans
Average Loss Severity by Loan Size for Last 59 Months – Losses > 2% of Loan Balance
The final charts give of a view of loss severity based on the number of months between the last paid through date and the disposition date. The first table includes all losses while the second only includes losses greater than 2%.
Average Loss Severity by Months to Recover – All Loans
Average Loss Severity by Months to Recover – Loss > 2% of Loan Balance
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