CIM Seeking $400M Refi for 1440 Broadway
By Cathy Cunningham May 29, 2020 3:41 pm
reprints
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.
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 (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 REIT, which 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.
