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Monday, 01 July 2019

M&T Lends $80Mln Against Midtown Manhattan Offices

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Commercial Real Estate Direct Staff Report

M&T Bank has provided $80 million of financing against the 187,060-square-foot Albano office building at 305 East 46th St. in midtown Manhattan.

The loan allowed the property's owner, Vanbarton Group, to retire a $61 million mortgage that the bank had provided last May. The previous loan facilitated Vanbarton's $118.5 million, or $633.50/sf, acquisition of the fully-leased building, whose sole tenant is the United Nations.

Vanbarton, a New York investment manager, bought the property in 2011 from the former Government Properties Income Trust, a Newton, Mass., REIT that had acquired it for $114.1 million. At the time, the building had generated $8.09 million in net operating income, giving the REIT's purchase price a capitalization rate of 7.1 percent. But the U.N.'s lease had only 6.7 years of term left, meaning it had rolled some time last year.

Between the time the U.N. moved into the building in 2007 and last year, rents in the midtown submarket have ballooned to roughly $76/sf from just less than $50/sf, according to CBRE. Last year, the U.N. renewed its lease for what is believed to have been a relatively short term. The presumably higher rents it's paying allowed Vanbarton to get a higher-proceed loan.

Meanwhile, the buzz is that Vanbarton recently put the property on the sales block through Eastdil Secured, as a result of the jump in value resulting from the U.N.'s lease renewal, which should translate to a jump in value of at least 25 percent.

That would explain it turning to M&T for its latest loan. Given its track record, the bank typically only writes short-term mortgages. Eastdil had brokered the property's sale to Vanbarton.

The 17-story Albano building sits between First and Second avenues, two blocks from the East River.

Vanbarton is led by longtime real estate executives Gary M. Tischler and Richard A.C. Coles. The company was known as Emmes Asset Management until 2015, when it changed its name to Vanbarton. It pursues office, apartment, retail and hotel properties in major markets, primarily New York and San Francisco, and originates bridge loans and makes preferred equity investments against similar targets.

The company's portfolio includes the 780,000-sf office building at 425 Lexington Ave. in Manhattan, which it had bought from JPMorgan Asset Management last October for $700 million, or $897/sf.

Comments? E-mail Tim Casey or call him at (267) 397-3347.



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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 $50 million and $100 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 - 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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