$250M CMBS Loan Secured by 25 Broadway Office Building Defaults
The CMBS loan behind 25 Broadway was sent to special servicing in April
By Brian Pascus April 22, 2024 12:56 pm
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A $250 million CMBS loan secured by 25 Broadway, an iconic, early 20th century Manhattan office building recently vacated by WeWork (WE), has defaulted on its April maturity date and is now in special servicing, according to a Trepp report released Monday.
The $250 million CMBS loan is made up of two parts — a $130 million piece, and a $120 million portion that are significant portions of separate CMBS conduit packages. The borrower defaulted on its April maturity date and provided evidence that it could not refinance after an earlier maturity extension was denied, according to Trepp.
In February 2021, CO reported that WeWork vacated roughly 86,000 square-feet of the property, after having been a tenant for eight years.
Formerly known as the Standard & Poors Building and today called The Cunard Building, 25 Broadway is a 22-story structure, spanning 956,000 square-feet, first constructed in 1921.
With an enormous limestone facade, center arches, and numerous setbacks, the Italian Renaissance architecture of the property recalls the heyday of American urban construction from the early 20th century, and helped ensure 25 Broadway became a New York City landmark in 1995. The building’s vaulted Beaux-arts lobby is modeled after Roman bathhouses and today houses events for Cipriani.
Former tenants from its early days include Cunard Steamship Line, Anaconda Copper, New York Central Railroad, while later tenants include Standard & Poors, and City College of New York.
Most recent tenants include Industrious, Wolfson Group, Cipriani, and Moment Factory. Industrious, a flex office provider, began leasing 44,000 square feet at 25 Broadway in June 2022.
Occupancy was 92 percent in 2022 and 2023, according to Trepp.
Brian Pascus can be reached at bpascus@commercialobserver.com
