Search
 

Fifth Ave. Tower Goes into Special Servicing

NEW YORK CITY-The $1.2-billion debt on Kushner Cos.' 666 Fifth Ave. has been transferred to LNR Partners, Bloomberg reported Friday

By Paul Bubny | Updated on March 07, 2010

NEW YORK CITY-Kushner Cos., which set a record for a single office property when it bought 666 Fifth Ave. for $1.8 billion in early 2007, has turned over the debt on the 41-story tower to a special servicer, Bloomberg reported Friday. The $1.2-billion loan is not in default, a Kushner spokesman told Bloomberg.

“The transfer of the 666 Fifth Ave. loan was done at the request of Kushner Cos., so that it could more easily engage in productive discussions with the lender,” according to the spokesman. Bloomberg reported the special servicer as LNR Partners Inc. The debt, which was originated by Barclays Capital, has been on a special servicing watch list since June of 2008, Bloomberg reported.

Currently, Kushner has about $60 million left in a reserve fund to cover debt payments and related expenses, down from $98.2 million in November 2008. Although the 1.5-million-square-foot property was 90% occupied as of this past June, asking rents at 666 Fifth are well below the $110 per square foot originally projected in loan documents, according to Bloomberg.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.