The $235 million commercial mortgage-backed securities (CMBS) loan on RFR Holding’s office property at 285 Madison Avenue has transferred to special servicing, according to a Trepp alert released Monday. Aby Rosen’s RFR has requested that the loan’s maturity date be extended.
The debt behind the 511,208-square-foot Midtown Manhattan asset, which sits near Grand Central Terminal, was securitized in the NCMS 2018-285M CMBS deal in 2017, and just transferred to special servicer KeyCorp Real Estate Capital Markets. The fixed-rate loan is scheduled to mature in November.
Korean real estate fund manager KTB Asset Management led the $475 million refinance for the asset in November 2017. In addition to the NCMS 2018-285M A-note securitized portion, the five-year, fixed-rate loan also included a $35 million B-note, $120 million of senior mezzanine debt and $85 million of junior mezzanine debt, according to CRED iQ. Natixis co-originated $270 million of the loan’s senior tranche.
The 26-story property was 95 percent occupied as of Sept. 30, 2021, compared to 97 percent at the end of 2019, according to data from CRED iQ. The building’s largest tenant is clothing giant Tommy Hilfiger, which leases 219,800 square feet for its corporate headquarters in a deal scheduled to run through Oct. 31, 2033. Ziff Capital Partners has a lease for 26,211 square feet scheduled to expire on May 31, 2026, per CRED iQ data.
RFR acquired the then-vacant 285 Madison 10 years ago for $189 million and invested $65 million to renovate the 1926-built asset in 2013. The landlord’s improvements included a comprehensive lobby renovation, new mechanical systems, upgrades to all common areas and new bathrooms on each floor, according to the company’s website.
Officials at RFR did not immediately return a request for comment.
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