CIM Group cuts debt on Brooklyn Heights office buildings to $245M, with JPMorgan Chase, Claros Mortgage Trust

CIM Group through the entity 25-30 Columbia Heights (Brooklyn), LLC as borrower signed a refi loan with lender JPMorgan Chase and Claros Mortgage Trust valued at $245 million for four properties including the office building at 25 Columbia Heights in Brooklyn Heights, Brooklyn, specialty building at 67 Furman Street in Brooklyn Heights, Brooklyn, and office building at 51 Furman Street in Brooklyn Heights, Brooklyn.
The deal closed on February 15, 2022 and was recorded on February 25, 2022. The prior lender was JPMorgan Chase which held debt that had an original loan amount of $335 million.
The four properties have 650,891 square feet of built space and 4,680 square feet of additional air rights according to PincusCo analysis of city data. The loan price per built square foot is $297 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 signatories for CIM Group were Nicholas V. Morosoff and David Thompson. The signatory for JPMorgan Chase and Claros Mortgage Trust was Simon Burce.
(321194346)The DOB issued a major alteration (A1) initial temporary certificate of occupancy for the building on January 23, 2020.
Following a forbearance agreement dated July 9, 2020, CIM paid down the principal with prepayments of the senior loan, building loan and project loan totaling $64.5 million. This brings the secured debt of the building down from a high of $375 million in 2016. The refinancing is split between lenders JPMorgan Chase and Mack Real Estate Credit Strategies’ affiliate Claros Mortgage Trust.
In Brooklyn Heights, the bulk, or 38 percent of the 21.1 million square feet of built space are residential elevator buildings, with office buildings next occupying 15 percent of the space. In sales, Brooklyn Heights has had very little sales volume relative to other neighborhoods with $228.8 million in sales volume in the last two years. For development, Brooklyn Heights has had very little major development activity relative to other neighborhoods. It had 261,202 square feet of commercial and multi-family construction under development in the last two years, which represents 1 percent of the neighborhood’s built space.
On the tax block, the majority, or 35 percent of the 1.2 million square feet of built space are office buildings, with residential elevator buildings next occupying 32 percent of the space.

Within a 400-foot radius of 51 Furman Street, PincusCo identified one commercial real estate item of interests occurred over the past 24 months.
It was a loan which Starwood Capital Group borrowed $120 million from Barclays secured by the 148,616-square-foot, 225-unit hotel (H1) on 60 Furman Street and four other properties on November 6, 2019.

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