Rockefeller Center Secures One of the Largest Single-Asset CMBS Loans
Bank of America and Wells Fargo have co-led the issuance of the $3.5 billion single borrower Commercial Mortgage-Back Security (CMBS) loan that refinances the multi-building Midtown campus known as Rockefeller Center. The loan carries a fixed 6.2265% interest rate and represents the “largest CMBS transaction since 2022,” as well as the “largest-ever CMBS issued for a single office asset” according to reports. An existing $1.7 billion loan carrying a 5.6% interest rate, and 20-year term set to mature in May 2025 will be paid off along with existing mezzanine financing. The remaining $246.8 million in proceeds will be utilized as a “reserve budget to cover rents and services to tenants and landlords, and $179.8 million in equity will be returned to investors. Due to the higher interest rate that the new mortgage carries and larger loan balance, the mortgage-interest costs will be significantly higher than the $95 million cost on the older loan. It was further noted in a press release by Crain’s New York on October 16, a few days prior to the financing deal closing and with the understanding that the terms could change, the “new mortgage would come due in five years,” with “the shorter term dictated by the institutional investors who have agreed to buy the Rockefeller Center mortgage after it’s originated.”
News of Tishman Speyer seeking the loan initially surfaced at the end of September, with reports at the time suggesting that “the extent of the success or failure of the deal” could serve as a “bellwether for financings of other trophy Midtown properties.” Tishman Speyer along with partners initially purchased Rockefeller Center out of bankruptcy for $1.2 billion in 1995; and in 2001, Tishman and Chicago-based investment fund Henry Crown & Co. took full control of the approximately 7.3 million-square-foot campus upon buying out the other partners for $1.85 billion. Over the last few years, several updates have been made to ensure that the campus stays relevant including the addition of three restaurants on the high-profile ice-skating rink level and a new mix of retailers that have added the flavor of both the Midtown South and Downtown submarkets to the Midtown area. In addition, “The Beam” attraction has been added to the three-level Top of the Rock observation deck, and more recently the Skylift attraction was unveiled. Currently about 93% leased, the tenant roster includes Deloitte, Lazard, Simon & Schuster, JPMorgan Chase, and luxury auction house Christie’s which renewed its lease for 400,000 square feet in August 2024.
Source: https://www.crainsnewyork.com/real-estate/rockefeller-center-close-massive-mortgage-refinancing