Tishman Speyer refis Midtown West office building at $274M, down from $300M in 2013

11 West 42nd Street (Credit - Google)

11 West 42nd Street (Credit - Google)

Tishman Speyer through its 11 West 42 Realty Investors, L.L.C. as borrower signed a loan with lender Bank Of America valued at $274 million for the office building (O4) at 11 West 42nd Street in Midtown West, Manhattan. The prior loan was $300 million provided in 2013.
The deal closed on June 30, 2023 and was recorded on July 5, 2023. The property has 949,976 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $288 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.)

Prior sales and revenue

The 949,976-square-foot property generated revenue of $66.1 million or $70 per square foot, according to the most recent income and expense figures.

The property

The parcel has frontage of 191 feet and is 200 feet deep with a total lot size of 34,300 square feet. The lot is irregular. The zoning is C6-6 which allows for up to 15 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 $316.7 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 eight DOB violations and $6,380 in OATH penalties in the last year.

Development

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 Midtown West, The majority, or 75 percent of the 75.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 14 percent of the space. In sales, Midtown West has the 6th highest sale turnover among other neighborhoods in the city with $2.3 billion in sales volume in the last two years. For development, Midtown West is the most active neighborhood among other neighborhoods. It had 19 million square feet of commercial and multi-family construction under development in the last two years, which represents 25 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of four of the seven commercial properties representing 2,863,582 square feet of the 3,787,904 square feet. The largest owner is Brookfield Properties, followed by Tishman Speyer and then Vornado Realty Trust.
There are no active new building construction projects on this tax block.

The majority, or 91 percent of the 3.8 million square feet of built space are office buildings, with specialty buildings next occupying 7 percent of the space.

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