Tishman Speyer $485M Park Avenue Loan To Hit Special Servicing
Tishman Speyer’s $485M loan on a billion-dollar Park Avenue office property is in the hands of a special servicer after the landlord opted to get ahead of an upcoming maturity.
The development giant's loan on the 770K SF, 25-story building, which was issued in 2013 by German American Capital Corp., is coming due in August, The Real Deal reports. The loan was marked as "imminent maturity/balloon default," according to a Trepp report, as occupancy and revenue at the building have dipped in recent years.
“Given the current credit market dislocation, we requested that our loan be transferred to the special servicer well in advance of its maturity so that we can work together on a mutually beneficial extension,” a Tishman Speyer spokesperson told TRD.
The building's occupancy was 99% before the pandemic but is now sitting at 84%, and 25% of its leases are set to expire within the next year, according to Trepp. The building was valued at $1B when the loan was issued, but its annual revenue had dipped by more than $12M between 2021 and 2022.
Green Loan Services, an arm of SL Green, is the special servicer, while KeyCorp Real Estate Capital is the master servicer.
More than $16B in loans backed by New York City commercial real estate are set to mature this year, with 300 Park Ave. just one of a number of high-profile office buildings with loans coming due. Another is the Seagram Building, owned by Aby Rosen’s RFR Holding, which has a loan of $783M maturing in May it is reportedly seeking to refinance.
Lenders have warned borrowers to start working with their backers sooner rather than later when it comes to refinancing in this environment.
“If you're a borrower, and you want to work with your lender — and trust me, your lenders want to work with you on office loans — you have to show conviction by putting money into the system,” Square Mile Capital Managing Director Samir Tejpaul said at a Bisnow event in February.
“I think more lenders are going to be accommodating, because at this point in time, potentially there's a 50% devaluation in the asset class,” he added. “So we're all incentivized to try and find you more time to work through the situation.”