Value Of Tishman Speyer's Long Island City Office Complex Slashed In Loan Workout
Tishman Speyer has dodged an imminent maturity default on its 1.2M SF Long Island City office tower, buying time to fill a major vacancy.
The Jacx, a two-building complex delivered in 2019, was appraised for $480M, down 44% of its 2021 appraised value of $860M, according to Morningstar Credit Analytics. The new appraisal came as Tishman Speyer negotiated an extension of the building's $425M CMBS loan that was due to mature in September.
Tishman Speyer injected an additional $20M of its own equity for a three-year extension of the loan, with a 1.5-year option, according to Morningstar Credit. The developer had indicated it would be unable to refinance the mortgage, which was was sent to special servicing in February.
The deal is subject to passing debt yield hurdles and will return to the master servicer after three months of performance, according to Morningstar.
“Our success in quickly completing a multi-year extension, ahead of our loan’s maturity, speaks to the quality of The JACX development and the continued strength of the surrounding Long Island City neighborhood,” a spokesperson for Tishman Speyer said in an email.
Tishman delivered the two 26-story Jacx towers in 2019, with Macy’s signing on as the largest tenant, inking an 867K SF lease before the towers had completed, the New York Post previously reported.
But following the pandemic, Macy’s never moved into the tower, which cost $650M to build, Crain’s New York Business reported. Its space is available for sublease.
Macy’s has an option to contract its lease obligations by three of its 22 floors in the towers in 2029, making refinancing tricky. The building’s net cash flow in 2025 was 4.3% below its underwritten levels in 2025, at a time when the property’s extensions options had been exhausted, according to March commentary from Morningstar.
WeWork also previously occupied 217K SF of the office complex but abandoned its lease in 2023 as it underwent its bankruptcy restructuring process. Following WeWork’s exit, Tishman Speyer continued to operate that space as a flex workspace under its own brand.
Tishman Speyer, which is reportedly the front-runner to reacquire the Chrysler Building, is coming off a string of success in the CMBS markets. It secured the largest single-asset office loan in CMBS history in 2024 when it refinanced Rockefeller Center for $3.5B, then extracted a nearly $1B dividend when it refinanced The Spiral in Hudson Yards in 2025 for $2.9B.
