Cohen Brothers’ NYC International Plaza Loan Returns to Special Servicing
The remaining $126.8 million balance of Citigroup’s commercial mortgage-backed securities loan for Cohen Brothers Realty’s International Plaza office skyscraper in Midtown Manhattan has reverted back to special servicing due to looming default, according to data and analysis from research firm Trepp.
The outstanding debt, which is part of a $130 million loan split between the GSMS 2015-GC34 and CGCMT 2015-GC35 CMBS conduit deals, was 30 days delinquent in September, according to Trepp and CRED iQ. The loan, which matures in October 2025, was previously sent to special servicing in July 2021 and has been delinquent seven times, Trepp data shows.
Coworking space provider WeWork (WE) occupies more than 20 percent of the 31-story property at 750 Lexington Avenue since signing a 15-year lease in 2018. The tower was built in 1986 and spans 382,256 square feet.
Cohen Brothers tapped into a $7.7 million reserve established as part of Citi’s 2015 CMBS financing after law firm Locke Lord vacated roughly 119,000 square feet, which comprised about 31.2 percent of the building’s rental area in June 2016, Commercial Observer previously reported, citing Trepp data. The property, which was 71 percent occupied in 2021, has encountered cash-flow challenges stemming largely from Locke Lord’s exit and a distressed office market during the COVID-19 pandemic.
Officials at Citi and Cohen Brothers did not immediately return requests for comment.
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