Tishman Speyer signs $3.5B refi for Rockefeller Center in Midtown West

Tishman Speyer through the entity 620 Venue, L.L.C. as borrower signed a refi loan with lender Bank of America and Wells Fargo through the entity Bank Of America, N.A. valued at $3500 million for six properties in Rockefeller Center including the office building (O4) at 1260 Sixth Avenue, the office building (O9) at 1230 Sixth Avenue and the office building (O4) at 600 Fifth Avenue in Midtown West, Manhattan.
The deal closed on October 18, 2024 and was recorded on October 25, 2024. The prior lender was a CMBS trust, Series 2005-Rock, which held debt that had an original loan amount of $1.2 billion.
The properties have 6,408,617 square feet of built space and 490,107 square feet of additional air rights according to a PincusCo analysis of city data. The loan price per built square foot is $546 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. Galiano. The signatory for Bank of America and Wells Fargo was Steven L. Wasser. The new financing paid off $1.2 billion CMBS Series 2005-Rock, and $500 million in mezzanine debt, according to a press release. The release said this was the largest single asset single borrower CMBS ever financed. The loan is 6.2265 percent.

The property

The office buildings in Midtown West have 6,408,617 square feet of built space and 490,107 square feet of additional air rights according to a PincusCo analysis of city data. One of the parcels has frontage of 200 feet and is 920 feet deep with a total lot size of 184,764 square feet. The zoning is C5-2.5 which allows for up to 12 times floor area ratio (FAR) for commercial The property is in the Individual Landmark. The city-designated market value for the property in 2022 is $1.3 billion.

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 received eight DOB violations and $52,620 in OATH penalties in the last year.

Development

For the tax lot buildings, five out of the six buildings received a initial certificate of occupancy in the last ten years. On these lots, there are two active new building construction projects and major alteration projects with initial costs more than $5 million, totaling 131,172 square feet. The largest, M00493985, is a major alteration project for a 472,362 square-foot B building submitted by Erica Hintze with plans filed April 30, 2021 and permitted June 22, 2021. The second largest, M01103346, is a major alteration project for a 356,584 square-foot 70 building submitted by Rene Roman with plans filed October 7, 2024 and it has not been permitted yet.

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 2nd highest sale turnover among other neighborhoods in the city with $2.8 billion in sales volume in the last two years. For development, Midtown West is the most active neighborhood among other neighborhoods. It had 27.2 million square feet of commercial and multi-family construction under development in the last two years, which represents 36 percent of the neighborhood’s built space. There were two pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On the tax block of 1260 Sixth Avenue, PincusCo has identified the owner of the one commercial property that spans that spans 2,734,038 square feet on the block.The identified owner is Tishman Speyer.
There are no active new building construction projects on this tax block.

All properties are office.

The borrower

The PincusCo database currently indicates that Tishman Speyer owned at least 35 commercial properties with 2,642 residential units in New York City with 17,120,945 square feet and a city-determined market value of $6.4 billion. (Market value is typically about 50% of actual value.) The portfolio has $3.9 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 17,120,945 square feet of built space are office properties, with specialty properties next occupying 9 percent of the space. The bulk, or 80 percent of the built space, is in Manhattan, with Queens next at 16 percent of the space.

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