Loan Sought on Midtown NY Offices
A J.P. Morgan Asset Management partnership is seeking a $400 million fixed-rate mortgage on an office building in Midtown Manhattan.
The group wants a 10-year mortgage on the 957,000-square-foot property, at 498 Seventh Avenue. Estreich & Co. is advising J.P. Morgan and its partners, Loeb Partners Realty and George Comfort & Sons, both of New York.
Loeb and George Comfort formerly owned the 25-story building with SITQ Immobilier, the real estate arm of Canadian pension-fund advisor Caisse de Depot et Placement du Quebec. In 2011, J.P. Morgan bought out SITQ’s 49.9% stake in a transaction that valued the property at $410.8 million.
Deutsche Bank financed the recapitalization with a $200 million fixed-rate mortgage with a 5.25% coupon. Deutsche included the 10-year loan in a $2.1 billion securitization the same year (DBUBS 2011-LC2). That loan would be defeased with the proceeds of the new mortgage.
The building, which dates to 1920, is at West 37th Street in the Garment District, three blocks north of Penn Station. Its occupancy rate is 97% following a substantial tenant change, according to a servicer report. Advertising conglomerate GroupM Worldwide exited last November when its 417,000-sf lease expired. But the J.P. Morgan partnership signed SEIU United Healthcare Workers East to a 30-year lease on 520,000 sf.