Haymes signs $260M loan mod for office in Penn Plaza, debt had been in special servicing

Haymes Investment Company through the entity 5 Penn Plaza LLC as borrower signed a loan modification and extension with LNR Partners as special servicer for the securitized trust Series 2016-GC36 valued at $260 million for the office building (O4) at 5 Penn Plaza in Penn Plaza, Manhattan.
The deal closed on October 6, 2025 and was recorded on October 15, 2025.

The property has 611,625 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $425 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 Haymes Investment Company was Stephen D. Haymes . The signatory for CGCMT 2016-GC36 and LNR Partners was Brett Mann . This is a loan modification and extension of a securitized loan originated in 2016. The new maturity date is January 6, 2028. Fitch had downgraded the bonds earlier this year, based in part on an expected maturity default at this loan: “The largest increase in loss expectations since the prior rating action in CGCMT 2016-GC36 and CGCMT 2016-GC37 is the 5 Penn Plaza loan, secured by a 650,329-sf office property located in Midtown Manhattan. The loan transferred to special servicing in November 2024 due to Imminent Default, as the borrower requested a loan modification due to declining occupancy. The loan has an upcoming maturity date in January 2026.” The Real Deal reported in November 2024 when the loan was moved to special servcing.

Prior sales and revenue

The 611,625-square-foot property generated revenue of $34.2 million or $56 per square foot, according to the most recent income and expense figures.

The property

The office building in Penn Plaza has 611,625 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 197 feet and is 120 feet deep with a total lot size of 23,601 square feet. The lot is irregular. The zoning is C6-4 which allows for up to 10 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $188.1 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received one DOB violation and $2,110 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on October 29, 2018. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Penn Plaza, The majority, or 76 percent of the 20.4 million square feet of commercial built space are office buildings, with hotel buildings next occupying 8 percent of the space. In sales, Penn Plaza has had very little sales volume relative to other neighborhoods with $184.9 million in sales volume in the last two years. For development, Penn Plaza has 2.7 times the average amount of major developments relative to other neighborhoods and is the 9th highest in Manhattan. It had 3.9 million square feet of commercial and multi-family construction under development in the last two years, which represents 19 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of seven of the seven commercial properties representing 2,254,251 square feet of the 2,254,251 square feet. The largest owner is Haymes Investment Company, followed by Sl Green Realty and then Kibel Companies.
There are no active new building construction projects on this tax block.

The majority, or 56 percent of the 2.3 million square feet of built space are office buildings, with elevator buildings next occupying 37 percent of the space.

The borrower

The PincusCo database currently indicates that Haymes Investment Company owned at least three commercial properties in New York City with 1,273,089 square feet and a city-determined market value of $366.7 million. (Market value is typically about 50% of actual value.) The portfolio has $100 million in debt, borrowed from Deutsche Bank. Within the portfolio, the bulk, or 99 percent of the 1,273,089 square feet of built space are office properties, with retail properties next occupying 1 percent of the space. They are all located in Manhattan.

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