101 Park Avenue’s $365M Loan Hits CMBS Market in SASB Deal

The $365 million loan on H.J. Kalikow & Co.’s 101 Park Avenue is being securitized in the BAMLL 2018-PARK single-asset single-borrower deal, according to rating agency reports released today. 

The fixed-rate, interest-only 10-year Bank of America loan is secured by the borrower’s fee simple interest in the 1.3-million-square-foot, 48-story, Class-A office building, located between 40th and 41st Streets in Midtown, just south of Grand Central Terminal.

Proceeds of the loan are being used to refinance $309 million in existing debt—also provided by Bank of America and securitized in the BAMLL 2012 PARK CMBS deal, fund $6.3 million in upfront reserves and return roughly $45.8 million of sponsor equity, Fitch Ratings’ presale report shows. “Based on the as-is appraised value of $1.5 billion, the borrower has approximately $1.1 billion of implied equity remaining in the property,” Fitch analysts wrote.

The $365 million mortgage has a Fitch debt service coverage ratio of 1.63x, a loan-to-value of 53.5 percent and debt of $284 per square foot.

Peter Kalikow has owned the land beneath 101 Park Avenue since 1978 and constructed the building in 1982. Today the property comprises 1.2 million square feet of office space, 43,590 square feet of retail space, 23,399 square feet of storage space and a 37,399-square-foot parking garage.

As of May, the property was 89.7 percent leased to 30 tenants. The three largest tenants are law firms Morgan Lewis & Bockius, Kelley Drye & Warren and Curtis, Mallet-Prevost, Colt & Mosle, all of which have leased space at the building since its opening.  

As previously reported by Commercial Observer, the American Kennel Club (AKC) is relocating its corporate headquarters to the building from St. Louis, Mo., leasing 60,000 square feet of space and housing its two-story Museum of the Dog there. AKC’s lease started in June but it has six months of free rent which coincides with the timeline of the tenant’s buildout, according to the Fitch report.

Representatives for H.J. Kalikow didn’t immediately respond to a request for comment.

source https://commercialobserver.com/2018/08/101-park-avenues-365m-loan-hits-cmbs-market-in-sasb-deal/