Mortgage Observer

MBA Report Shows Increased Lending Across All Property Types in 2013

Money_Cash

Commercial mortgage origination exceeded expectations in 2013, with $358 billion in loans on commercial and multifamily properties closed, according to the annual origination summation report from the Mortgage Bankers Association.

The report, unveiled earlier this week, showed banks invested $100.5 billion last year–28 percent of the annual volume–while CMBS, CDO and ABS issuers invested $79.8 million, which accounted for 22 percent of the overall volume amount. Life insurance companies and pension funds did $60.2 billion in deals—17 percent of the year’s total. Read More

Controversies

Bloomberg LP Leases Posh Penthouse As Mayor Fumes Over Reporting Scandal

(nymag.com)

Have you ever splurged when you’re pissed off, or when someone’s pissed off at you? That’s kind of what Bloomberg LP just did.

The global media company has leased 68,000 additional square feet of pristine space at Global Holdings‘ 120 Park Avenue on the heels of a client data breach that has reportedly infuriated its high-profile owner: Mayor Michael Bloomberg. Read More

Assignments

Tri Realty Taps Colliers as Leasing Agent for 801 Second Avenue

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Tri Realty has selected Colliers International as the exclusive listing agent for 801 Second Avenue, it was announced today. Currently,  the building boasts availability of an entire 8,500-square-foot floor and a 5,000-square-foot partial floor.

“It’s a small assignment, but an important client,” Andrew Simon, executive managing director at Colliers, told The Commercial Observer. Mr. Simon is joined on the leasing team by Drew O’Malley, Arthur Zuckerman and Jack Schulman.

The building is located at the southwest corner of East 43rd Street, in close proximity to Grand Central Station. “This is a value play in the Grand Central market,” Mr. Simon said. Asking rents for the building are in the low-$50s per square foot, with leases in the high-$40s achievable, according to Mr. Simon. Read More

Lease Beat

Sterne Agee Expands at 277 Park Avenue

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Financial services firm Sterne Agee has inked a 9-year expansion for 23,000 square feet at 277 Park Avenue, Andrew Sachs, executive director at Cushman & Wakefield, who represented the tenant, confirmed with The Commercial Observer. Asking rents in the building range from $65 to $85 per square foot depending on location, he noted.

Currently, Sterne Agee occupies 46,000 square feet in the building on the 24th and 25th floors. The new lease does not include a renewal for the previous space, according to Mr. Sachs. The firm moved to its current location in 2011.

“[Sterne Agee] is a fairly opportunistic organization that is seeing growth across a number of different business lines,” Mr. Sachs said. “It was a shrewd move on their part.” Read More

Sales Beat

CIM Group Scoops 225 Fifth Avenue in the Flatiron District for $78 M.

(Credit: CIM Group)

Los Angeles-based real estate investment firm CIM Group has closed on its purchase of the retail portion of 225 Fifth Avenue in the Flatiron District for more than $78 million, city records show.

The retail property consists of two parcels totaling 40,079 square feet and is currently 100 percent leased to a number of long-term tenants including JP Morgan Chase, 24 Hour Fitness, Verizon Wireless, and United States Postal Service. Read More

Mortgage Observer

Banking on the Community

Illustration by John Tomac.

When the owners of 197 East Broadway, on the Lower East Side, came to terms with the fact that their building was in desperate need of a renovation after 124 years as their headquarters, they made a move that might look obvious for any holder of a valuable commercial real estate asset. They looked for a loan. On paper, though, the Educational Alliance—a non-profit serving about 50,000 New Yorkers with a range of services, from pre-school, health and wellness for seniors to addiction recovery programs—is not your average Goldman Sachs client.

Nonetheless, in August 2012, Goldman Sachs’ Urban Investment Group committed $44.1 million of capital to finance the redevelopment of the Educational Alliance’s building. The financing comes in part as a New Markets Tax Credit transaction, and in part as a senior loan directly to the nonprofit. Read More

Lease Beat

60 Wall Street Hits the Market for the First Time… Well, Ever

60 Wall Street

For years 60 Wall Street was the cloistered home of institutional giants.

JP Morgan Chase built the tower in the late 1980s and occupied it through the 1990s. Then in the early 2000s Deutsche Bank acquired the building and it too filled the property’s entire 1.6 million square feet with its operations.

Because of its function solely as a large headquarters space to single users since its inception, 60 Wall Street has been a building unfamiliar to tenants and leasing brokers. Read More

Mortgage Beat

Financing in Place for Related’s 500 West 30th Street Tower

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Wells Fargo has provided a $190 million construction loan for the Related Co.’s multifamily development at 500 West 30th Street, just off the Hudson Yards development site. The 32-story tower will include 385 rental apartments, retail space and parking.  Joanna Rose, a Related spokesperson, told The Mortgage Observer that the project “is expected to go vertical by the end of the year.”

Alan Wiener, group head of Wells Fargo Multifamily Capital, said that the loan is in line with the types of projects the bank tends to finance in the New York area. “It’s going to be an 80/20 and even though it’s outside the Hudson River Yards, it’s right across the street,” Mr. Wiener explained. “We’re providing the letter of credit and it’s being financed by bonds issued by the Housing Finance Agency.” Read More

Lease Beat

Deutsche Bank Takes 50K in Brooklyn

4 MetroTech. (Courtesy Property Shark)

Deutsche Bank AG will be opening its first office in Downtown Brooklyn after it agreed to take 50,000 square feet at the JPMorgan Chase-owned 4 MetroTech Center, The Commercial Observer has learned. Read More

Lease Beat

EXCLUSIVE: In a Reversal, Law Firm Milbank Tweed Considers a Renewal

1 Chase Manhattan Plaza. (Courtesy Property Shark)

The law firm Milbank Tweed, Hadley & McCloy LLP is negotiating to renew its lease at the downtown office building 1 Chase Manhattan Plaza, sources said.

The firm occupies 375,000 square feet on several floors at the property, which is owned by the bank JP Morgan Chase. Rents in the deal were not available by press time. The lease is a change in plans for the company. Read More