CIM Seeking $400M Refi for 1440 Broadway 

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Big financing requests have been few and far between of late, but CIM Group just came to market with one that’s sure to capture lenders’ attention. 

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The firm is seeking roughly $396 million in floating-rate debt for its office property at 1440 Broadway, Commercial Observer has learned. The financing sought comprises a $366 million refinance for the asset, plus an additional $30 million for tenant improvement and leasing commission costs. 

Ideally, the loan will have a three-year term with two one-year extension options. 

CBRE Capital Market’s James Millon, Tom Traynor and P.J. Finley are handling the debt assignment, sources said, with bids due in mid-June. CBRE officials declined to comment. 

The property — which sits on the corner of 40th Street and Broadway, near Bryant Park and also Times Square — is a 745,000-square-foot, 25-story office tower. 

CIM Group acquired the asset for $520 million in 2017 from New York REITwhich was shedding assets as part of its  liquidation plan. Blackstone Group provided $360 million in acquisition financing for the deal, which also was arranged by the CBRE team.  That round of financing drew competition from a variety of capital sources, including a mix of U.S. and foreign banks as well as debt funds. 

The building was 50 percent leased at the time of CIM’s purchase. The firm undertook a comprehensive capital improvement program that included a new lobby and rooftop event/meeting space and — following an aggressive leasing campaign — has since increased the property’s occupancy to 94 percent. Its net operating income has also been increased from $14.3 million to $29.6 million, according to information shared with CO.

WeWork accounts for 40 percent of the tenancy, having signed a 236,000-square foot lease spanning eight floors at the asset in December 2018, but the co-working firm’s space is now 100 percent leased to three different tenants.

A representative for CIM didn’t immediately respond to a request for comment.