Brookfield Properties signs $750M loan modification with ING Capital for office in Midtown West

Brookfield Properties through the entity Bsrep III Nero LLC as borrower signed a refi loan with lender ING Capital through the entity Ing Capital LLC valued at $750 million for the office condo at 666 Fifth Avenue in Midtown West, Manhattan. ING provided the original loan of $750 million in 2018.
The deal closed on November 21, 2022 and was recorded on December 5, 2022. The property has 1,169,666 square feet of built space according to PincusCo analysis of city data. This is a fee and leasehold mortgage.
The signatory for Brookfield Properties was Sabrina Khabie. The signatories for ING Capital were Craig R. Bender and Jeffrey Schwartz.

The property

The 666 5th Avenue parcel has a total lot size of 1,169,666 square feet. The city-designated market value for the property in 2022 is $538 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property since September of 2020. In addition, according to city public data, the property has not received any significant violations in the last year.

The neighborhood

In Midtown West, the majority, or 73 percent of the 77.7 million square feet of commercial built space are office buildings, with hotel buildings next occupying 13 percent of the space. In sales, Midtown West has the 4th highest sale turnover among other neighborhoods in the city with $2.4 billion in sales volume in the last two years. For development, Midtown West is the 2nd most active neighborhood among other neighborhoods. It had 12.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 16 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of three of the 12 commercial properties representing 2,027,503 square feet of the 3,035,974 square feet. The largest owner is Brookfield Properties, followed by Harbor Group International and then Vornado Realty Trust.
There are no active new building construction projects on this tax block.

The majority, or 98 percent of the 914,501 square feet of built space are office buildings, with retail buildings next occupying 2 percent of the space.

The borrower

The PincusCo database currently indicates that Brookfield Properties owned at least 138 commercial properties in New York City with 49,842,772 square feet and a city-determined market value of $7.9 billion. (Market value is typically about 50% of actual value.) The portfolio has $9.6 billion in debt, with top three lenders as Wells Fargo, JPMorgan Chase, and Athene Annuity And Life Company respectively. Within the portfolio, the bulk, or 85 percent of the 49,842,772 square feet of built space are office properties, with elevator properties next occupying 12 percent of the space. The bulk, or 83 percent of the built space, is in Manhattan, with Brooklyn next at 13 percent of the space.

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