NEW YORK CITY-RFR Realty’s 500,000-square-foot office tower at 757 Third Ave. has gone into special servicing, the New York Post reported Tuesday. The transfer of a $126-million loan, part of a CMBS package, occurred one month after the property lost its second largest tenant. TreppWire first reported the transfer last week.
A spokesman for RFR told the Post that “the loan was put into special servicing so it could be restructured.” A remittance report on the securitized loan, which is backed by 108 properties and is scheduled to mature in 2014, cited “imminent default,” according to TreppWire.
The Third Avenue office property supports $126.1 million in debt that’s divided between an A1 note, an A2 note, a B1 note and a B2 note, Trepp says. The A1 and A2 notes are part of LBUBS 2004-C8 and represent 6% of the deal, according to Trepp. The trustee on the loan is Bank of America.
The second-largest tenant at 757 Third is law firm Aaronson Rappaport Feinstein, which currently occupies about 27,000 square feet and is relocating to 600 Third Ave. The property is substantially full, says the Post. RFR and a Citigroup unit paid $102 million for the property in 1999.
Last week, Fitch Ratings reported that of the 960 CMBS loans scheduled to mature by the end of 2010, 103 are in special servicing. Click here for the Post article.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
