Rockefeller Center Closes in on $3.5B CMBS Deal at 6.5% Interest Rate
By Andrew Coen October 16, 2024 5:40 pm
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The famed Rockefeller Center is nearing the finish line on a $3.5 billion refinance, but the commercial mortgage-backed securities (CMBS) deal will come with a heavy price for property owners Tishman Speyer and Henry Crown and Company.
Bank of America (BAC) and Wells Fargo (WFC) are leading the CMBS loan on the 13-building Midtown Manhattan office and retail complex in a transaction set to price Friday, according to a report Tuesday from KBRA.
The deal marks the largest CMBS transaction since April 2022, according to CoStar data.
The interest rate for the new debt is 6.5 percent, up from 5.6 percent priced 19 years ago into a previous $1.7 billion CMBS loan securitized in the GSMS 2005-ROCK transaction, the KBRA report shows. The new loan will have a shorter term than its predecessor, maturing in 2029 — a stark contrast to the 20-year term for the 2005 transaction.
Crain’s New York Business was first to report the expected Friday deal closing and its borrowing costs.
CoStar first reported last week that Tishman Speyer had agreed to loan terms with Bank of America and Wells Fargo for the refinance, citing a regulatory filing. But CoStar did not have specifics on loan terms.
Proceeds from the new CMBS deal will be used to refinance the property’s existing debt of $3 billion, according to KBRA. The transaction will also establish a $246.8 million reserve fund to cover the costs of outstanding landlord obligations, free rents and other services provided to new tenants. It will also return $179.8 million of equity to the sponsors.
Officials at Tishman Speyer and Henry Crown did not immediately return requests for comment.
Andrew Coen can be reached at acoen@commercialobserver.com
