Mortgage Observer

Wells Fargo and BNY Mellon Lead $412M Loan for Durst West Side Rental

A rendering of 625 West 57th Street. (Durst Fetner)

The Durst Organization scored a $411.5 million construction loan from a group of lenders led by Wells Fargo and Bank of New York Mellon Corp. to finance the development of its tetrahedron-shaped rental tower at 625 West 57th Street, sources familiar with the deal told Mortgage Observer.

The loan, which closed last week, carries a term of four years with a one-year extension option and “smoking interest rates,” one person familiar with the transaction said on the condition of anonymity. Read More

Lease Beat

Wells Fargo Subleases For New ATMs in Times Square Station [Updated]

Wells Fargo ATM

Wells Fargo bank will open its second ATM area in the Metropolitan Transportation Authority‘s Times Square-42nd Street Station through a 485-square-foot sublease until August 2017 for a retail storefront beneath Eighth Avenue near West 44th Street that will net the agency an annual rent of $24,400, MTA officials said.

The bank with over 12,000 ATM locations nationwide and an existing one elsewhere in the bustling station in a corridor near West 42nd Street and Broadway, according to the firm’s website, subleased the space from One Stop Music, a music, DVD, video games, luggage, posters and electronics store that moved to a 600-square-foot space across the hall, said store owner Adam Chowdury. Read More

Mortgage Observer

Wells Fargo Syndicates Westin Diplomat Loan

Westin Diplomat Resort & Spa.

Wells Fargo has syndicated a $260 million senior loan it provided to Thayer Lodging Group Fund VI and Brookfield Asset Management for a joint-venture acquisition and renovation of the Westin Diplomat Resort & Spa, in Hollywood, Fla., Mortgage Observer has exclusively learned.

Wells Fargo completed the syndication this week with three participating lenders, which the San Francisco-based bank declined to name. Michael Brown of the bank’s real estate syndication team under Wells Fargo Securities led the transaction. Read More

Mortgage Observer

Silverstein, Elad Seek $500M to Build 1 West End Avenue

Larry Silverstein

Silverstein Properties and Elad Group, who are partnering on high-end residential condominium 1 West End Avenue, are now seeking about $500 million in construction funds from a consortium of banks for the project, sources told Mortgage Observer.

The syndicate will be led by Wells Fargo and Bank of America, who provided the loan the partnership used to buy the Midtown West land last year from the Carlyle Group for $160 million, one person said.  Read More

Mortgage Observer

Q&A: Christopher Jordan, Head of Wells Fargo’s Hospitality Finance Group

Christopher Jordan.

Mr. Jordan spoke with Mortgage Observer in September from his office in Washington, D.C. He told MO about the inception of Wells Fargo’s hospitality lending arm, where the market may be heading as 2015 approaches and two newsworthy deals his team recently closed. The 53-year-old Maryland native received his bachelor’s degree in 1983 and his Master’s of Business Administration in 2005, both from Duke University. He joined Wells Fargo in 1988. Read More

Mortgage Observer

Wells Fargo Names Horatio Jones Head of Multifamily in South Florida

Jones Horatio.

Wells Fargo has appointed Horatio Jones, one of its commercial real estate loan originators, to lead the bank’s South Florida office for multifamily GSE lending, Mortgage Observer has exclusively learned.

Mr. Jones, who is based in Fort Lauderdale, brings more than seven years of commercial real estate lending experience to the new position, according to a Wells Fargo spokesperson. Read More

Mortgage Observer

Silverstein Properties Refinances River Place With $230M Wells Fargo Loan

River Place.

Wells Fargo provided a $230 million Fannie Mae loan to Silverstein Properties to refinance its River Place rental tower at 650 West 42nd Street on the corner of 12th Avenue, the borrower confirmed to Mortgage Observer.

The seven-year interest-only loan carries a rate below 3.5 percent and replaces existing securitized debt on the property that is nearing maturity, Silverstein Properties Chief Executive Officer Marty Burger said. Ackman-Ziff served as a broker on the transaction. Read More

Mortgage Observer

Willis Tower Now in Special Servicing: Fitch

Willis Tower (tallest)

Chicago’s Willis Tower was transferred to special servicing this week due to “imminent monetary default,” according to Fitch Ratings, which tracks the senior CMBS debt on the building’s loan. The 110-story tower was, until last year, the tallest in America. One World Trade Center was ruled tallest in November.

The borrowers, a group that includes a number of prominent New York owners and developers led by Joseph Chetrit’s Chetrit Group, owe almost $500 million in senior CMBS debt and about $774 million total, according to data from Fitch. Read More

Mortgage Observer

Retail Lending Gets Easier—Thanks in No Small Part to CMBS

Retail lending is on the rise

It’s loan shopping season for shopping center owners. Retail landlords around the country are increasingly turning to commercial mortgage-backed securities to finance properties in secondary markets as an alternative to traditional loans, industry sources told Mortgage Observer.


While banks and insurance companies that provide traditional commercial real estate financing are targeting primary markets like New York and San Francisco, focusing on prime properties and the strong multifamily sector, investors who are hungry for returns are willing to dig into CMBS deals on less desirable properties with less prestigious retail tenants and higher leverage, sources said. Read More

Mortgage Observer

Citigroup and Others to Lend $1.45B to SL Green, as REIT Raises Cash for New Deals

388 Greenwich Street

The financial musical chairs at Citigroup’s Tribeca offices continue. The multinational financial services firm signed a contract in December to occupy and possibly buy two buildings, 388 and 390 Greenwich Street, which it already occupies. Now, the bank is also lending a whopping $1.45 billion to the current landlord, SL Green Realty, according to a report from Bloomberg News today.

That loan–which reportedly includes bundled funds from Barclays Plc, Wells Fargo and Bank of China—will be packaged into bonds set to hit the market next month. Read More

On the Market

Socony-Mobil Building on the Market

Socony-Mobil Building. (Credit: PropertyShark)

The Sacony-Mobil Building, a 1.7 million-square-foot office tower at 150 East 42nd Street is on the market, according to Bloomberg News. The building’s owner, Hiro Real Estate, a Japanese investment firm, is asking $900 million for the long-term leasehold.

The building is 90 percent occupied and has two major tenants, Wells Fargo and Mount Sinai Hospital, which each occupy approximately 500,000 square feet. The 42-story tower is located less than a block from Grand Central Terminal. Read More

Lease Beat

Western Union Signs Direct Deal for its Space at 199 Water

199 Water Street

Western Union, which currently leases a 29th floor space at 199 Water Street as a subtenant of Wells Fargo, will now lease it directly from landlord Jack Resnick & Sons, Commercial Observer has learned. 

The worldwide global payment services company’s new 10-year direct lease of 20,689 square feet in the 1.1 million-square-foot lower Manhattan building will start on Jan. 1. Asking rents were in the high $40s per square foot. Read More

Mortgage Observer

Rockrose Receives Morgan Stanley Loan for LIC Residential Tower

Linc LIC

New York brokerage firm The Singer & Bassuk Organization has negotiated a $240 million loan on behalf of luxury real estate owner Rockrose Development Corp. to refinance its 42-story rental tower Linc LIC‎ in Long Island City, Mortgage Observer has exclusively learned.

Morgan Stanley provided the 10-year loan, which closed on Friday, March 6, Andrew Singer, Singer & Bassuk’s chairman and chief executive officer, said, noting that the loan could be securitized in the future. The permanent mortgage replaces a 5-year $155 million construction loan from October 2011 provided by a syndicate of lenders led by Wells Fargo. Read More