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Tuesday, 09 November 2010

Stake in Chrysler East Building Sells for $10Mln

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Madison International Realty has paid $10 million for an additional 10.4 percent stake in 666 Third Ave., a 745,410-square-foot office building in midtown Manhattan commonly referred to as Chrysler East.

Madison, which buys illiquid positions in core properties, has invested a total of $55 million in the property since 2008. It had acquired its initial stake from a closed-end fund sponsored by Commerzbank, which had acquired a 75 percent interest in the building in 2002 from Tishman Speyer and Travelers Opportunity Fund.

Madison, which operates a series of private-equity funds with more than $1 billion of capital commitments, provides equity to property owners who prefer retaining operational control.

The Chrysler East building is encumbered by $176.1 million of debt, $120.6 million of which was securitized through HVB Mortgage Capital Corp., 2003-FL1. The debt matures next March, but could be extended for another 18 months. According to servicer data compiled by Realpoint, the building was 99.5 percent occupied last year and generated an annualized $24.5 million of net cash flow. That compares with $21 million of cash flow in 2003, when the loan was underwritten.

"The exit strategies we create for existing investors have become particularly attractive in today's market as holding periods have elongated," explained Ronald Dickerman, founder and president of Madison. "We are also seeing an enhanced need to amortize maturing debt with equity, restructure or recapitalize, or to sell a minority ownership position so investors can monetize some of the value in their properties or portfolios."

The company also owns interests in the Seagram Building at 375 Park Ave., the Colgate-Palmolive Building at 300 Park Ave. and 520 Madison Ave. in Manhattan.

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.



Copyright © 2010 Commercial Real Estate Direct www.crenews.com

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Additional Info

  • Syndicate to Realpoint: No
  • Cities: New York City
  • States: New York
  • Sector: Office
  • Subject: Property Acquisitions (ACQ)
  • Deal Name: HVBMC, 2003-FL1
  • Valuation: Between $10 million and $25 million
Read 508 times Last modified on Tuesday, 09 November 2010

Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44

 

RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41

 

 

 

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