Financial District Office Heads to Distress Sale

by NEW YORK DIGITAL NEWS


A 41-story waterfront office building in the Financial District is hitting the market in a distress sale. 

The tower at 180 Maiden Lane is up for sale after its loan matured and the lender and building owner agreed to sell the building through a short sale, according to sources familiar with the matter. 

A short sale is an alternative to a foreclosure. It occurs when the lender reaches a deal with the property owner to sell the property to recoup some of the debt. The building will likely sell for less than its debt.

Eastdil Secured’s Gary Phillips and Will Silverman are spearheading the sale. Eastdil declined to comment. 

In 2015, Clarion Partners and MHP Real Estate Services bought the building for $470 million, with Blackstone financing the acquisition with a $248 million loan.  

The property inked some large leases in 2018, including with debt consolidation firm National Debt Relief, which signed a lease for 95,000 square feet at the building; and the New York Liquidation Bureau, which secured 43,000 square feet. The building was also home to Stroock & Stroock & Lavan, one of New York City’s largest real estate law firms, which dissolved last year. 

In 2020, Clarion and MHP refinanced with a $372 million loan from a lending group led by ING Capital. 

The owners spent $175 million on renovations, including common area improvements and tenant build outs. The building has an all glass facade and a rotating art gallery with an on-site curator, and options for a rooftop observation deck. It is 71 percent leased.  

The office sector in New York and throughout the country are facing distress. 

Vacancy rates in major U.S. cities rose to 19.6 percent, according to Moody’s Analytics, the highest since Moody’s started tracking the data point in 1979. Some office owners in the Financial District have sought to convert their aging buildings to residential developments. At 25 Water Street, GFP and Metroloft are planning a 1,300-unit conversion.

Read more



Source link

You may also like