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June 15, 2018  

Brookfield Syndicate Swells to a Dozen Banks

Six more banks have joined a $1.15 billion floating-rate loan on the redeveloped Five Manhattan West office building, doubling the size of the foreign-bank-dominated syndicate.

The original six lenders closed the mortgage in April for a Brookfield Property partnership. As previously reported, Landesbank Baden-Wurttemberg, the administrative agent, was joined by Bank of China, DekaBank, ING Real Estate Finance, Natixis and Societe Generale.

Those banks have now syndicated the seven-year loan, bringing in six more lenders: Bank of Communications, Bank of East Asia, Bayerische Landesbank, Raymond James, Santander and Shinsei Bank. The syndication was completed a week or two ago. The sizes of the individual participation interests couldn’t be learned.

Pricing on the loan is around 150 bp over one-month Libor, and leverage is in the range of 65%, placing the 1.7 million-square-foot Manhattan building’s value at some $1.8 billion.

The property, at 450 West 33rd Street, is part of the Brookfield partnership’s massive Manhattan West development. Unlike other portions of the 7 million-sf complex, which are ground-up developments, the 17-story Five Manhattan West was built in 1968. New York-based Brookfield and its partner, Qatar Investment Authority, completed a $350 million renovation last year.

As the project was finished, signed a 15-year lease on 360,000 sf, bringing the property to full occupancy. Other tenants include J.P. Morgan (305,000 sf), IHS Markit and R/GA Media.

Five Manhattan West stretches along 10th Avenue from West 31st to West 33rd Street. It has a street-level retail component that’s mostly occupied by a 60,000-sf Whole Foods grocery store.