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Ounce of Prevention

The $1.2-billion loan on 666 Fifth Ave. in Manhattan, which in early 2007 set a sales record for a single office property, was transferred to a special…

By Paul Bubny - Northeast region editor of GlobeSt.com and Real Estate Forum. | Updated on December 09, 2011

The $1.2-billion loan on 666 Fifth Ave. in Manhattan, which in early 2007 set a sales record for a single office property, was transferred to a special servicer in early March. According to a statement, the transfer was made to allow the trophy tower’s owners, the Kushner Cos., “to engage more easily in productive discussions with the lender. The loan is not currently in default.”

Shortly after 666 Fifth was transferred into special servicing, the $325-million balance on another Manhattan property purchased at the market’s peak, 575 Lexington Ave., went the same route. The statement issued on behalf of the owners, a joint venture of the California State Teachers Retirement System and Silverstein Properties, was similar: the loan wasn’t in default and the transfer was intended to facilitate discussions about modifying the loan.

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