Mortgage Observer

Terra Capital and Bank of America Finance Marriott Warner Center Deal

The Marriott Warner Center.

Terra Capital Partners provided $22 million of preferred equity to Los Angeles-based Laurus Corporation to help fund the development firm’s acquisition and renovation of the Marriott Warner Center hotel in Woodland Hills, Calif., the mezzanine lender told Mortgage Observer.

Terra worked together with Bank of America, which provided $74.5 million in first mortgage financing towards the $110 million project. Both the senior loan and the preferred equity carry three-year terms with two one-year extension options. Read More

Mortgage Observer

BofA Agrees to $16B in Penalties for Bad RMBS—the Biggest Settlement in American History

BofA

Bank of America has agreed to pay over $16.6 billion to end federal and state probes into its mortgage bond sales, U.S. Attorney General Eric Holder announced in Washington, D.C. this morning. The fine—which takes the form of penalties as well as consumer relief—is the largest civil settlement with a single entity in American history.

While other banks have paid hefty sums to settle similar claims (Citigroup paid $7 billion and J.P. Morgan $13 billion), the punishment is by far the most severe meted out by the government for behavior pre-2008.  Read More

Sales Beat

Deutsche to Buy Stake in 222 Broadway: Report

222 Broadway.

Deutsche Asset & Wealth Management has agreed to acquire a 95-percent stake in 222 Broadway, Real Estate Alert reported yesterday. The deal, brokered by Eastdil Secured, values the property at approximately $500 million.

Beacon Capital and L&L Holding Company paid Bank of America $230 million for the building in 2012. Boston-based Beacon is selling its equity stake in the building while L&L will stay on as a partner and building manager, according to the report. Read More

Mortgage Observer

Larry Gagosian Closes $48M Mortgage on Chelsea Gallery

Larry Gagosian (Credit: Getty)

Larry Gagosian, one of the world’s biggest art dealers, has closed a $48.8 million mortgage from Bank of America on his storied Chelsea art gallery at 202 11th Avenue, according to public records.

The purpose of the financing was not immediately clear, but Mr. Gagosian’s home on Further Lane in East Hampton, Long Island, is listed as collateral in the mortgage documents, along with the gallery property, at 24th Street. Read More

Lease Beat

Tiger Global Management Joins Triple Digit Rent Club

Courtesy of Wikipedia

Tiger Global Management is the latest to break the triple digit threshold for commercial space in the city.

Following Ruane, Cunniff & Goldfarb Inc., which signed a deal in late May, the investment management firm will be taking a massive 32,000-square-foot space in the prized Plaza District 9 West 57th Street. The building, owned by Sheldon Solow, is known for its breathtaking views and the ability to demand close to $200 per square foot. Read More

Lease Beat

Nonprofit Relocates to 120 Wall Street

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The American Institute of Chemical Engineers has signed a long-term, 16,506-square-foot lease at Silverstein Properties120 Wall Street, it was announced today.

“After a two-year search of both Midtown South and Downtown, which included inspections of over 50 properties, AIChE elected to relocate to 120 Wall Street, one of the few buildings to provide an incentive program for not-for-profits,” said Leon Manoff, vice chairman at Colliers International, who represented the tenant, in a prepared statement. Read More

Lease Beat

Patterson Belknap Signs 200,000 SF Lease at Revamped Durst Building

(Credit:  Durst Organization)

Law firm Patterson Belknap Webb & Tyler has signed a 20-year lease for 200,000 square feet of at the recently renovated 1133 Sixth Avenue in Times Square, The Commercial Observer has learned.

The firm resigned a lease for floors 18 through 26 that it first inked 20 years ago.  The Durst Organization’s in-house broker Tom Bow represented the landlord, while Ira Schuman of Studley represented the tenant – the same brokers who completed the firm’s lease in the building 20 years ago.

The 1.1 million square foot, 45-story Emery Roth & Sons-designed building was completed by The Durst Organization in 1970 and recently underwent a seven-month lobby renovation, overseen by the architecture firm Gensler. Read More

1Q13

Which Way is Up: Manhattan’s Market Boundaries are Beginning to Blur

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From the outside, 222 Broadway fits the stereotype of the Downtown financial office tower.

But when Bank of America downsized, leaving roughly 250,000 square feet of space vacant, a series of tours guided by its new owner, L&L Holdings, quickly blasted that stereotype away.

Condé Nast committed to 80,000 square feet at the tower in early March. WeWork, which provides collaborative workspace for tech and media companies, was next in line. Read More

Mortgage Beat

$310 M. 120 Broadway CMBS Loan Closes

120 Broadway.

Mortgage Observer Weekly  has learned that a $310 million CMBS loan on 120 Broadway closed last week, likely at a rate in the mid-2 percent range. Wells Fargo originated the loan.

A previous CMBS loan on the building had an outstanding balance of $215 million. Originated back in May of 2006, it was set to mature in June 2013, according to data from Trepp. Read More

The Sit-Down

1.5 Million and Counting: Robert Becker of The Durst Organization on Leasing Remaining Space at 1 WTC

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Robert Becker, senior leasing manager at The Durst Organization, joined the company eight months ago. Having previously worked closely with the firm as an executive with Bank of America’s global real estate transactions and leasing operations team, Mr. Becker jumped on board with inside knowledge of the firm’s pivotal role in shaping the landscape of Read More