Despite the losses at the end of 2008 and the beginning of 2009, Boston Properties CFO Michael LaBelle said in the second-quarter-earnings call that the company plans to pay down $100 million of the $500 million in securitized debt that will come due next year. Three of the properties it bought from the Macklowe portfolio, 2 Grand Central Tower, 125 West 55th Street and 540 Madison Avenue, account for $272 million of Boston’s total securitized debt obligations in 2010.
Boston Properties assumed Macklowe’s $200 million mortgage with Wells Fargo when it bought the 23-story office building at 125 West 55th from Deutsche Bank in August 2008. Goldman Sachs and Meraas Capital own $63.5 million of mezzanine debt on the property, which was 100 percent leased as of June 30. A $158 million payment is due in March, when the first mortgage matures. A $114 million payment on 2 Grand Central, which is 95 percent leased, and a $240 million payment on 540 Madison are also due next year. The $963.6 million mortgage on the most high-profile trophy Boston snagged from Macklowe, the GM Building, does not come due until after 2013. It is 97 percent leased.
Boston Properties spokeswoman Arista Joyner would not comment on details of the three mortgages, and referred The Commercial Observer to Mr. LaBelle’s comments in the transcript of the 2009 second-quarter-earnings call.
As of June 31, the company had taken care of all its 2009 maturities, Mr. Labelle said. “We are now focusing on our 2010 exposure, where we have some secured mortgages coming due, totaling about $800 million,” he said. “Five of these mortgages relate to joint venture properties, and our share of the total exposure is just over $500 million.”