CIM Group Lands $400M Financing From JPM, Oaktree for 1440 Broadway
By Cathy Cunningham March 5, 2021 10:45 amreprints
CIM Group has closed a $400 million financing for its office property at 1440 Broadway, Commercial Observer has learned.
The deal closed today and comprises an A/B Note structure, sources said. J.P. Morgan is securitizing the $300 million A-note in a floating-rate, commercial mortgage-backed securities (CMBS), single-asset, single-borrower (SASB) deal, while Oaktree Capital is holding the $100 million B-note.
Sources close to the deal said the senior loan was originally intended for the syndication market, but was pulled and switched to SASB given execution levels.
CO first reported in May 2020 — at the height of the pandemic — that CIM was seeking roughly $396 million in floating-rate debt for the asset. At the time, the financing request covered its $366 million refinance, plus an additional $30 million in tenant improvement and leasing commission costs.
As previously reported, CBRE Capital Markets’ James Millon, Tom Traynor and P.J. Finley negotiated the debt. CBRE officials could not immediately be reached for comment today.
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 at the time 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.
Macy’s corporate offices occupy 25 percent of the building, while 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. The coworking firm’s space is now 100 percent subleased to three different tenants.
A representative for CIM didn’t immediately respond to a request for comment.