Chetrit Extends and Restructures $152M CMBS Loan on 65 Broadway

They say the neon lights are bright on Broadway, but so are the deals. 

Chetrit Organization just closed a restructuring for the debt on its office property at 65 Broadway, Commercial Observer has learned. 

The $151.5 million commercial mortgage-backed securities (CMBS) loan has been extended by three years in exchange for Chetrit providing additional equity in the deal in a position that subordinates a portion of the debt, sources said. 

The CMBS loan is bifurcated between the CF 2019-CF1 (a $40 million A1 note and $96 million B note) and the MSC 2019-H6 ($15.5 million A2 note) conduit deals. 

Iron Hound Management’s Kevin Thompson and Will Forbes negotiated the restructuring with special servicer CW Capital and the CMBS trust. 

“The Chetrit Organization, along with Iron Hound, worked nonstop with our lenders on 65 Broadway to get this one closed,” Michael Chetrit, principal of the Chetrit Organization, told CO. “We believe in a positive future for this asset going forward.” 

The 355,000-square-foot building, between Morris and Rector streets, was erected in 1916 and was once known as the American Express Building, serving as the financial services firm’s headquarters until 1974. 

The successful restructuring is the culmination of almost two years of negotiations. 

Originated in April 2019, the loan was transferred to special servicing in February 2024 ahead of its initial August 2024 maturity date after the building saw a steady dip in occupancy like several others in Lower Manhattan at the time. After losing tenants, including Great American Insurance and New York Cares, 65 Broadway faced resulting revenue struggles, CO reported at the time, citing Morningstar data. 

Now, with the negotiations firmly in the rear view window, 65 Broadway is ready for its next chapter.

Iron Hound declined to comment. 

Cathy Cunningham can be reached at ccunningham@commercialobserver.com.