Brookfield Properties signs $105M refi for office in Penn Plaza

Brookfield Properties through the entity Bprep 333 W 34th LLC as borrower signed a refi loan with lender Landesbank Baden-Wurttemberg valued at $105 million for three office condominium units at 333 West 34th Street in Penn Plaza, Manhattan.
The deal closed on February 14, 2023 and was recorded on February 16, 2023. The prior lender was Landesbank Baden-Wurttemberg which held debt that had an original loan amount of $130 million. The three properties have 286,520 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $366 per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The signatory for Brookfield Properties was Sabrina Khabie. The signatory for Landesbank Baden-Wurttemberg was Lisa Komm and Kevin Silberman.

The neighborhood

In Penn Plaza, the majority, or 71 percent of the 21.7 million square feet of commercial built space are office buildings, with specialty buildings next occupying 8 percent of the space. In sales, Penn Station has had very little sales volume relative to other neighborhoods with $101.9 million in sales volume in the last two years. For development, Penn Station has 2.8 times the average amount of major developments relative to other neighborhoods and is the 11th highest in Manhattan. It had 2.8 million square feet of commercial and multi-family construction under development in the last two years, which represents 13 percent of the neighborhood’s built space.

The block

On the tax block of 333 West 34th Street, PincusCo has identified the owners of one of the nine commercial properties representing 1,300,727 square feet of the 2,043,443 square feet. The identified owner is Holy Spirit Association for the Unification of World Christianity.
There are no active new building construction projects on this tax block.

The majority, or 74 percent of the 1.8 million square feet of built space are hotel buildings, with office buildings next occupying 19 percent of the space.

The borrower

The PincusCo database currently indicates that Brookfield Properties owned at least 48 commercial properties in New York City with 43,969,617 square feet and a city-determined market value of $6 billion. (Market value is typically about 50% of actual value.) The portfolio has $10.3 billion in debt, with top three lenders as Wells Fargo, JPMorgan Chase, and ING Capital respectively. Within the portfolio, the bulk, or 84 percent of the 43,969,617 square feet of built space are office properties, with elevator properties next occupying 11 percent of the space. The bulk, or 82 percent of the built space, is in Manhattan, with Brooklyn next at 14 percent of the space.

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