Since CMBS markets returned to life at the end of 2020, Brookfield was on the rise with a number of massive refinancing of one asset, blocked Manhattan’s largest real estate loans in three of the last four months.
The last was $ 835 million refinancing One New York Plaza, created by Wells Fargo, Goldman Sachs and BMO Harris Bank. The 50-story office building is located on the southern tip of Manhattan in the financial district.
The refinancing was securitized in a CMBS transaction called ONYP 2020-1NYP and the documents associated with this agreement provide an up-to-date and detailed view of the building’s finances.
The 2.6 million square foot tower is currently leased by 96.5 percent to 26 tenants, with an average rent of $ 53 per square foot, according to credit documents.
Morgan Stanley, which first became a subtenant in the building in 2005 and a direct tenant in 2012, now occupies more than half of the leasable space. The investment bank is currently reconstructing its premises and plans to return floors 32 and 36 in a slight downsizing this year. To facilitate the renovation, the company signed short-term leases on the 31st and 33rd floors to “smoothly swing staff in and out as needed.”
Other major tenants at One New York Plaza include Fried Frank, an international law firm, British publisher Macmillan, oversized FullBeauty, and cosmetics maker Revlon. The 39,000-square-foot retail space of the building is leased to tenants such as Starbucks, Chop’t, Retro Fitness and Chipotle, with base rents for retail leases signed at an average of $ 62 per square foot since 2015.
Due to the impact of the coronavirus pandemic, retail rents in property were only 17 percent in November. The parking operator, which is affiliated with Icon Parking, has not paid rent for months and is evicted, after which the landlord expects the transition from a lease agreement to a management contract. In November, meanwhile, office rent collections were 95 percent.
Brookfield acquired One New York Plaza in 2006 as part of the acquisition of Trizec Properties. In 2016, it sold a 49% stake to China Investment Corporation and a 16% stake to AEW Capital Management. It maintains a 35% stake and continues to manage the building.
Since 2012, the landlord has invested more than $ 230 million in the property, including renovation of the retail hall, facade repairs and construction of flexible office space. The building has also recorded nearly 1.4 million square feet in leasing over the past five years, following the departure of former tenants Goldman Sachs and Wachovia Bank in 2013 and 2014.