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Friday, 10 March 2017

Barclays Lends $140Mln Against Manhattan Office Property

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Commercial Real Estate Direct Staff Report

Barclays Bank has provided a $140 million mortgage against 123 William St., a 545,000-square-foot office property in lower Manhattan.

The loan, which will be securitized, pays a coupon of 4.67 percent and requires only interest payments for its 10-year term.

The financing replaced $96 million of floating-rate debt that Capital One Bank had provided in 2015. Capital One's loan matured earlier this month.

The 27-story building, between Fulton and John streets, is owned by American Realty Capital New York City REIT Inc., which had acquired it in 2015 for $253 million, or about $464/sf, from a venture of East End Capital and GreenOak Real Estate. It previously had held a $40 million preferred equity investment in the property, which it had made in 2013.

The 60-year-old building is 97.7 percent occupied by tenants that have a weighted average remaining 7.4 years left on their leases.

Tenants include the state of New York, with 101,619 sf; Planned Parenthood Federation of America Inc., with 65,242 sf through July 2031; New York City's Department of Youth and Community Development, with 40,000 sf through 2024, and the General Services Administration, which leases 36,573 sf on behalf of the U.S. Social Security Administration through June 2022.

The GSA pays annual rent of $1.9 million, or $52.74/sf. Planned Parenthood pays $3.3 million, or $50.98/sf. Its lease can be extended for an additional five-year term.

The property's lobby and elevators were renovated in 2014. American Realty carries it on its balance sheet at a value of $239.3 million. Last year, the property generated $9.5 million of net cash flow, nearly double the $4.9 million it generated in 2015. That's the result of the Planned Parenthood lease, which was signed in 2015.

Comments? E-mail Josh Mrozinski or call him at (267) 247-0112, Ext. 213.



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“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

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Additional Info

  • Syndicate to Realpoint: No
  • Cities: New York City
  • States: New York
  • Sector: Office
  • Subject: Mortgages/Financing (MOR)
  • Valuation: Between $100 million and $150 million
  • Private: No
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Data Digest

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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Top Bookrunners Domestic, Private-Label CMBS - 2016
Investment Bank #Deals Vol$mln MktShr%
JPMorgan Securities 14.94 10,350.16 15.14
Deutsche Bank 14.21 9,926.60 14.52
Wells Fargo Securities 13.36 9,513.96 13.92
Citigroup 10.87 8,061.79 11.80
Goldman Sachs 10.05 7,563.72 11.07

 

MOODY'S/RCA CPPI

 

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CMBS 2.0 Spreads

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Top CMBS Loan Contributors - 2016
Lender #Loans Vol$mln MktShr%
JPMorgan Chase Bank 133.67 8,670.33 13.34
Goldman Sachs 156.20 7,418.37 11.41
Deutsche Bank 178.17 6,510.75 10.02
Citigroup 184.41 5,512.20 8.48
Morgan Stanley 113.18 4,130.53 6.35

 

 

 

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