This CMBS is backed by only the loan on this building, and there is no diversification within it. The property, built in 1950, is the collateral for a $308 million loan that was originated by Deutsche Bank and securitized into a single-asset single-borrower CMBS in 2015. The two biggest tenants moved out well before their leases expired: L Brands, occupying 77% of the rentable area (lease expires March 31) and law firm Davis & Gilbert, which had 15.8% of the space.
Blackstone is walking away from the 26-story 621,000-square-foot office tower at 1740 Broadway in Midtown Manhattan that it had bought in 2014 for $605 million.
The losses are huge.Īnother older office tower is going to cost lenders an arm and a leg, after it already cost PE firm Blackstone an arm and a leg. Working-from-home and hybrid-work aren’t helping.
