Fisher Brothers took on $ 575 million in debt to refinance its 44-story Midtown office building, Place du Parc Avenue, a skyscraper owned by the company since its construction in 1980, according to the analysis of the rating agency’s agreement.
Morgan stanley originated the first 10-year, interest-only, $ 460 million mortgage that was accompanied by a $ 115 million mezzanine loan, the provider of which was not immediately clear, according to information from Moody’s Investor Service, who analyzed the case.
A portion of $ 260 million of the entire $ 460 million loan is to be securitized in a single-asset, single-borrower commercial mortgage-backed securities transaction, secured by the new Fisher Brothers fee simple interest mortgage of approximately $ 1.2 million. square foot property at 55, 52nd Street East, by Moody’s.
A Morgan Stanley representative did not respond to a survey, and Fisher Brothers declined to comment or provide additional information on the deal.
The office building is 99 percent leased to a pool of tenants with a weighted average remaining lease term of over 16 years, according to Moody’s, which said the property has an average occupancy of over 99 percent. since 2011, led by many long-term tenants. Lease contracts.
Some of the site’s biggest tenants include Morgan Stanley, Evercore and Intercontinental exchange – the latter two use the property as their registered office – and Black rock, who will move to 50 meters from Hudson after using 12 floors in Park Avenue Plaza for its corporate headquarters. Fisher Brothers announced in March that it was able to catch the asset management company Jennison Partners To fill nearly 121,000 square feet that BlackRock will move to Hudson Yards when the lease expires in April 2023.
Jennison Associates will occupy four floors that will be vacated by BlackRock – floors 24 through 27, representing $ 10.6 million in base rent – with plans to fully move in in 2024 or 2025, according to Moody’s and previous information provided by Fisher Brothers. .
The year that BlackRock is about to leave is an important year for the property, as far as lease expires go. BlackRock and Aon are currently scheduled to drop over 638,000 square feet, combined. Aon sublets its space to three tenants – investment companies General Atlantic and Court Square and Evercore – all of which have “direct leases” in place to take up Aon’s space when its lease expires, according to Moody’s.
Even with these major desertions, the property has recently seen strong rental activity – including the Jennison Associates lease – which will help maintain occupancy levels, according to Moody’s.
Fisher Brothers brought in Jennison and is “engaged in discussions with tenants currently occupying portions of the property and plans to lease any remaining BlackRock space to those tenants prior to the BlackRock lease expiration date,” according to Moody’s. .
Conceived by Skidmore, Owings & Merrill, the property’s floor plates near the base clock measure about 45,000 square feet each and they tap off about 30,000 square feet higher up in the tower, Moody’s said. The asset also includes a glass entrance hall and retail space on the ground floor.
Fisher Brothers have maintained the property well since it opened more than 40 years ago, according to Moody’s, which described the condition of the assets as “excellent.” The developer has invested around $ 39 million in capital spending, including lobby upgrades and leasehold improvements (IT), into the property since January 2020.
Mack Burke can be contacted at [email protected].