The San Francisco-based The Swig Company was developed in 1974 Grace BuildingOverlooking Bryant Park, it is easily recognizable by its sloping facades.
The 48-story office tower, located at 1114 Sixth Avenue, saw significant rental turnover a few years ago, with several of its largest tenants, including HBO and law firm Silicon Valley. Cooley LLP, moved to Hudson Yards. The vacancy was quickly filled by new tenants such as American bank and a digital marketing firm Trade Desk.
Swig and Brookfield Property Partners – who bought this property in 2006 acquired by Trizec Properties in 2006 – since 2014, they have invested more than $ 160 million in renovating and renting the building. In 2017, the two companies jointly acquired a long-term lease of neighboring buildings 1100 Sixth Avenuewhere Bank of America replaced HBO as the sole tenant of the office.
This month, Bank of America and JPMorgan and $ 1.3 billion real estate refinancing together with Credit Suisse and Deutsche Bank. Notes involving new debt contribute to several CMBS transactions, and the documents associated with these transactions provide an up-to-date view of real estate finance.
The 1.56 million square foot property – divided into 1.48 million square feet of office space and 59,000 square feet of retail retail – is now 95 percent leased with more than 35 tenants. Bank of America is the largest tenant in square meters, with 10 percent of the total leasable area, but its annual rent is only the third largest.
Trade Desk, whose office includes expensive three-storey attic apartment, pays a base $ 131 per square foot, which is well above the average $ 95 building. The Big Three, the consulting firm of Bain & Company, which has been in the building since 2014, also pays a three-digit rent for its 120,000 square foot space.
The two remaining tenants in the top five, the Israeli Discount Bank and venture capital firm Insight Partners, pay market rents for their premises. All major tenants in the building have a remaining lease term of at least 10 years, although Trade Desk and Israel Discount Bank have early termination options.
According to Moody’s, four of the building’s five retail tenants have not made rent payments in the past few months and rent deferrals are underway. The tenant in the building repaid his lease after he had been missing rent payments since March, and the landlords are in the process of introducing a new parking operator.