Brookfield signs $750M refi with Morgan Stanley for office in Financial District
Brookfield Properties through the entity Brookfield Properties Olp Co. LLC as borrower signed a refi loan with lender Morgan Stanley through the entity Morgan Stanley Mortgage Capital Holdings LLC valued at $750 million for 17 office condominium unit at 1 Liberty Plaza in Financial District, Manhattan.
The deal closed on June 14, 2024 and was recorded on June 21, 2024. The prior lender was Morgan Stanley which held debt that had an original loan amount of $783.9 million. The 17 properties have 1,690,747 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $443 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 Morgan Stanley was Cynthia Eckes.
The property
The office condo in Financial District has 1,690,747 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 1,362,190 square feet. The city-designated market value for the property in 2022 is $412.4 million.
Violations and lawsuits
There were no lawsuits or bankruptcies filed against the properties for the past 24 months. In addition, according to city public data, the properties have not received any significant violations in the last year.
The neighborhood
In Financial District, The majority, or 74 percent of the 79.9 million square feet of commercial built space are office buildings, with elevator buildings next occupying 15 percent of the space. In sales, Financial District has the 4th highest sale turnover among other neighborhoods in the city with $2.1 billion in sales volume in the last two years. For development, Financial District is the 3rd most active neighborhood among other neighborhoods. It had 9.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 12 percent of the neighborhood’s built space.
The block
There are no active new building construction projects on this tax block.
The borrower
The PincusCo database currently indicates that Brookfield Properties owned at least 57 commercial properties with 4,389 residential units in New York City with 25,030,096 square feet and a city-determined market value of $5.7 billion. (Market value is typically about 50% of actual value.) The portfolio has $10.8 billion in debt, with top three lenders as Wells Fargo, JPMorgan Chase, and ING Capital respectively. Within the portfolio, the bulk, or 60 percent of the 25,030,096 square feet of built space are office properties, with elevator properties next occupying 20 percent of the space. The bulk, or 72 percent of the built space, is in Manhattan, with Brooklyn next at 21 percent of the space.
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