On Thursday, Nov. 1, Virgo Business Centers made 27,321 square feet of temporary, furnished office space available at 14 Penn Plaza. Companies displaced by Hurricane Sandy filed in one by one, and by the following Thursday, the space was full.
“Typically, that process takes about a year,” said Pasha Erkin, director of sales at the company. “It’s all about readiness. You could literally bring me 40 people today, and I could have the space ready tomorrow. All you have to do is walk in, flip on a switch, plug in and start working.”
In that building alone, the company took on 177 employees from displaced companies like Coronet, amfAR, Linda Decorato, Ambrose and others located on the eastern tip of Downtown and other areas hit hard by the hurricane.
Anyone who follows the CMBS market, especially in relation to its contribution toward funding the massive amount of commercial real estate loans coming due the rest of 2012, knows that it can be a topsy-turvy ride. But experts tell The Mortgage Observer that despite the load of coming-due loans and a CMBS market that’s a fraction of where it was pre-crash, there’s no reason to panic. This, even as delinquency rates for CMBS climb higher and higher.
According to data from Trepp, initially there was roughly $70 billion in CMBS set to mature in 2012. As of the end of August, $38.6 billion of that was still outstanding, though this figure “is somewhat skewed by loans past their maturity dates but not modified,” one analyst said. These loans will likely meet differing ends, through extensions, modifications or liquidations. Just counting loans that are current, $13.5 billion is due to mature for the rest of the 2012.
Billionaire landlord Sheldon Solow has locked up a $625 million loan from Deutsche Bank AG to help refinance a securities-backed debt tied to 9 West 57th Street that was slated to mature in February, sources confirmed.
The loan, which was first reported by Bloomberg.com last week, will be used as “ongoing capital” for 9 West 57th, a person familiar with the matter told The Commercial Observer.
As expected (we noted last week this would likely happen and soon), Lehman Brothers has agreed to unload its majority stake in the old Toy Building at 200 Fifth Avenue in a deal that values it at about $700 million. It is one of the biggest building sales of 2011 so far, and one of the most significant moves by the croaked investment bank’s holding company in its campaign to liquidate its real estate. The buyer is a wing of JPMorgan.
It’s been a rough couple of years for Jamie Dimon, ever since JPMorgan joined several other banks in fomenting conditions that led to the collapse of the housing market. Just ask Jamie Dimon: “It’s going to be a long ugly mess, but it won’t be life-threatening to JPMorgan,” he told investors last month regarding Read More