Brookfield’s One New York Plaza Enters Special Servicing

The $835 million commercial mortgage-backed securities loan on the Brookfield Properties-owned One New York Plaza has entered special servicing in an effort to secure a modification on the loan, Commercial Observer has learned.  

Brookfield’s One New York Plaza office tower, located at the intersection of South Street and Whitehall Street in Manhattan’s Financial District, stands 50 stories tall and spans 2.5 million square feet.

The loan, which is set to mature on Jan. 9, 2026, is being transferred to special servicing in an effort to work out a modification, according to a source close to the deal. It’s unclear what led to the modification being requested. 

“Special servicing is more of a real estate workout,” David Putro, senior vice president and sector lead at Morningstar Credit Analytics, told Commercial Observer. “They’re bound to work in the best interest of the CMBS trust, but they work with the borrower to try to come to some kind of resolution — a reinstatement, a modification, or a loan extension.”

In the case of One New York Plaza, the loan was originally structured with three-year extension options built in, Putro said. Brookfield refinanced One New York Plaza with an $835 million loan originated through Wells Fargo, Goldman Sachs and BMO Harris Bank back in 2020. The refinancing was to pay off a $750 million loan originated by Wells Fargo in 2016.

“This was underwritten back in 2020 assuming $84.4 million of net cash flow,” Putro said. “And in the last full year that we have information on, 2024, that went down to $51.2 million. So a pretty significant drop in cash flow. But, despite all that, Brookfield has been current the entire life of the loan, they’ve never been late on a payment, never been delinquent.”

Brookfield is confident it will be able to work with the special servicer to reach a solution that will work for all parties involved. 

“Given the circumstances and the constructive conversations to date, we are very confident that mutually agreeable extension terms can be achieved quickly with the special servicer,” a spokesperson for Brookfield told CO. 

One New York Plaza is well known for its concourse that features Starbucks, Chipotle, Chopt and a number of other restaurant and retail options. Prominent office tenants at One New York Plaza include financial giant Morgan Stanley, law firm Fried Frank, and The New York State Office of General Services. However, the building has seen a decline in tenant occupancy, with Putro noting that the building has gone from 100 percent occupancy in 2022 down to 83 percent as of September 2025. 

“Although occupancy is down, it’s not a disaster,” Putro said. “We see buildings that are 60 percent occupied that are in much worse shape. …  My expectation here is that Brookfield is going to look to negotiate an extension, after the contractual ones expire.”

Amanda Schiavo can be reached at aschiavo@commercialobserver.com.