New York offices in $930 million refinancing deal.
Commercial property in New York City has benefited from two of the largest refinancing deals which have been completed despite the reluctance of lenders to offer dollars for the projects.
Manhattan office space has seen two commercial property refinancing deals completed as New York City looks to buck the nationwide trend of lenders refusing to lend money to office space projects.
Vornado Realty Trust and Sheldon Salow have both agreed refinancing packages worth $930 million with banks in relation to Park Avenue Tower and 9 West 57th Street commercial properties respectively.
However the successes of New York office buildings and Manhattan in particular does not disguise the fact that the commercial property market has stagnated due to the lack of willingness of banks and other lenders to invest in the country’s office space.
From places such as Webster, Texas, through to Providence in Rhode Island, office space has been marginalised with vacancies and lack of movement coming about because of the perilous office market.
The only times that commercial real estate investment trusts have been able to attract external investment has been in relation to trophy office buildings which should increase in value regardless of the present economic climate.
Julia Tcherkassova of Barclays’ commercial mortgage bond analyst in New York said: “Having a New York City trophy asset in a CMBS deal, if it is a true trophy, generally is a positive for investors, [however] there are going to be fewer competitors bidding and when the buildings lose tenants it’s difficult to replace them.”
Tags: Manhattan office space, New York City office space, New York office space, Providence office space, Texas office space