Tishman Speyer signs $180M refi with Bank of America for Chrysler Building East, down from $265M

Tishman Speyer through the entity Chrysler East Building, L.L.C. as borrower signed a refi loan with lender Bank of America valued at $180 million for the office building (O4) Chrysler Building East at 666 Third Avenue in Grand Central, Manhattan.
The deal closed on November 3, 2022 and was recorded on November 7, 2022. The prior lender was Series 2013-C7 which held debt that had an original loan amount of $265 million.The property has 666,376 square feet of built space according to PincusCo analysis of city data. The loan price per built square foot is $270 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 Tishman Speyer was Paul A. Gallano. The signatory for Bank of America was Henry C. Pennell. Tishman Speyer and sovereign wealth partners sought to sell the property in 2019, according to an article by The Real Deal at the time.

Prior sales and revenue

The 666,376-square-foot property generated revenue of $48.3 million or $73 per square foot, according to the most recent income and expense figures.

The property

The 666 3rd Avenue parcel has frontage of 200 feet and is 100 feet deep with a total lot size of 34,771 square feet. The lot is irregular. The zoning is C5-3 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 $206.6 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 received $3,180 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 8, 2012. There are no active new building construction projects or major alteration projects with initial costs more than $5 million on this tax lot.

The neighborhood

In Grand Central, the majority, or 80 percent of the 43.9 million square feet of commercial built space are office buildings, with hotel buildings next occupying 8 percent of the space. In sales, Grand Central has 2.5 times the average sales volume among other neighborhoods with $875.2 million in sales volume in the last two years and is the 17th highest in Manhattan. For development, Grand Central has 1.2 times the average amount of major developments relative to other neighborhoods and is the 22nd highest in Manhattan. It had 1.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 3 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of one of the four commercial properties representing 1,035,307 square feet of the 1,734,314 square feet. The identified owner is RFR Holding.
There are no active new building construction projects on this tax block.

The majority, or 98 percent of the 1.7 million 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 Tishman Speyer owned at least 88 commercial properties in New York City with 16,851,559 square feet and a city-determined market value of $6.2 billion. (Market value is typically about 50% of actual value.) The portfolio has $2.9 billion in debt, with top three lenders as Wells Fargo, Blackstone Group, and Bank of America respectively. Within the portfolio, the bulk, or 75 percent of the 16,851,559 square feet of built space are office properties, with elevator properties next occupying 14 percent of the space. The bulk, or 78 percent of the built space, is in Manhattan, with Queens next at 16 percent of the space.

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