NYC’s Largest Commercial Real Estate Finance Deals of 2021
One Vanderbilt, 1290 Sixth Avenue, Terminal Stores at 271 11th Avenue and 1133 Sixth Avenue (Wikimedia, VNO, COOKFOX, Google Maps)
The New York commercial real estate market has been the subject of doom and gloom since the pandemic began.
Employers do not yet have to enlist workers to return to their physical workplaces on a massive scale, but the market rebounded steadily over the year. Most importantly, lenders are still betting on Class A offices – which is dampening the bears’ predictions.
New York’s five largest loans in 2021 totaled $ 7.2 billion, an impressive pace compared to the $ 7.9 billion raised by the city’s top 10 deals in 2020 became.
SL Green’s One Vanderbilt secured one of the largest single-asset mortgage-backed securities deals of all time and secured a $ 3 billion refinancing in June. Other big deals included the Vornado Realty Trust and the Trump Organization’s $ 950 million refinancing of 1290 Avenue of the Americas.
Here are the top five commercial real estate financings in 2021.
1. Wells Fargo, Goldman Sachs, and seven other banks completed a $ 3 billion refinance for One Vanderbilt. through
A group of nine banks donated $ 3 billion to SL Green, the National Pension Service of Korea, and Hines’ One Vanderbilt in June. The mammoth loan was used to pay off a $ 1.75 billion home loan with an outstanding balance of $ 1.54 billion. The 93-story Supertall on 42nd Street and Vanderbilt Avenue was 89 percent let at the time. Wells Fargo made half of the total debt, or $ 1.5 billion, while Goldman Sachs contributed $ 600 million. Bank of America, Bank of China, Bank of Montreal, Deutsche Bank, and JPMorgan Chase each provided $ 150 million.
2. L&L Holding Company and Columbia Property Trust have secured a $ 1.25 billion loan for a landmark terminal project
The developer and the REIT completed the loan for the 1.3 million square foot lot on 11th Avenue between West 27th and 28th Streets. Blackstone, Goldman Sachs and KKR directed the financing, while Oaktree Capital Management and Paramount Group provided mezzanine financing. The $ 1.8 billion redevelopment aims to convert the 1.2 million square foot landmarked warehouse into offices, retail space, food and beverage areas, and other indoor and outdoor facilities.
3. The Durst Organization raised $ 1.1 billion in funding for 1133 Sixth Avenue and 114 West 47th Street
The dynastic family business grabbed a 10-year CMBS, fixed-rate, interest-only loan from Bank of America, Citigroup, and Wells Fargo. The funding was to pay off $ 800 million in debt from Citi and Ladder Capital. Both office towers are located near Bryant Park.
Built in 1989, the 26-story building at 114 West 47th Street has a size of 660,000 square feet and has Bank of America as its largest tenant. The 47-story, 1.1 million square foot building on Sixth Avenue opened in 1970.
4. Trump and Vornado refinanced 1290 Avenue of Americas with a $ 950 million CMBS loan
Vornado Realty Trust and the Trump Organization secured refinancing from JPMorgan, Citibank, Goldman Sachs and the Bank of Montreal. The loan is used to pay off existing debts. Vornado owns 70 percent of the 2.1 million square foot Midtown Tower, while Trump Org owns 30 percent. 98 percent of the building is occupied by 25 tenants, a quarter of the occupied space is sublet.
5. Larry Gluck’s Stellar Management grabbed a $ 905 million refinancing for One Soho Square from Goldman Sachs, Deutsche Bank and the Bank of Montreal
Stellar Management secured the massive CMBS loan to refinance its 787,000 square foot office and retail complex in Hudson Square. The new financing, which includes a mezzanine loan of € 120 million
The new loan has a fixed interest rate of 2.7 percent – a full percentage point less than the loan from 2019 – and has a term of seven years without an extension option. According to a rating report by DBRS Morningstar, One Soho Square was 92.5 percent let to 10 office tenants and six retail tenants in June.