$110MM Non-Performing NYC Loan | Leasehold Office Portfolio_Property for Sale

New York, NY, US, Americas

$110MM Non-Performing NYC Loan | Leasehold Office Portfolio

Portfolio description

Jones Lang LaSalle Americas, Inc. (“JLL”) has been retained on an exclusive basis to arrange the sale of a $110,242,102 loan (the “Loan”) secured by a first-lien leasehold mortgage against five (5) office properties (individually or collectively as the context may require, the “Properties”, “Property” or “Collateral”) located in the Manhattan borough of New York, NY.

The Properties consist of 5 office buildings totaling 362,599-SF, which were 81.9% occupied as of December 2024. The Properties are located in the NoMad neighborhood within the Flatiron/Union Square submarket of Midtown South.

The original $120M Loan was originated in May 2019 for a 3-year term. Upon the initial maturity in May 2022, the Loan was modified to grant a 1-year extension and instituted the current rate based on 1M Term SOFR + 2.00%. The amendment included a potential 6-month extension option, but the Collateral failed to generate sufficient cash flow to meet a debt yield test and the Sponsor declined to make a principal paydown to right-size the Loan. Consequently, the Loan is in default for failure to pay the principal balance off at Loan maturity on May 9, 2023.

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Attributes

Loan status

Non-Performing

Maturity date

09/05/2023

Call for offers

04/03/2025

$110MM Non-Performing NYC Loan | Leasehold Office Portfolio (5 Properties)

Media

Investment Highlights

Strong Leasing Momentum

Overall occupancy remains strong at 81.9% with the Properties attracting more than a dozen new leases or renewals since March of 2021.

Live-Work-Play Location

The Properties are in NoMad, a vibrant and trendy district situated in the heart of Manhattan characterized by its stunning architecture, featuring beautifully restored Beaux-Arts buildings, stylish boutique hotels, and upscale residential developments. The neighborhood has experienced a revival in recent years, with a surge of new restaurants, trendy bars, and fashionable shops opening their doors.

Attractive Basis

The offering is anticipated to allow a potential note buyer to acquire the Loan at a discount to the Borrower’s acquisition basis and the current UPB of $110,242,102 or $304 PSF.