Bank of America Merrill Lynch is preparing its next large loan transaction—this time backed by a first-class office building in Midtown Manhattan, according to a presale report by Kroll Bond Rating Agency.
The collateral for the $675 million deal, BAMLL Commercial Mortgage Securities Trust 2014-520M, consists of a first lien mortgage loan, which is secured by the borrower’s fee simple interest in 520 Madison Ave. The roughly 1.0 million square foot building is made up primarily of offices, along with retail and storage space. The building is situated in the heart of Midtown Manhattan’s Plaza district—the largest office submarket in the country, which Kroll views as one of the deal’s strengths. As of June 2014, the property was 99.6% leased, and has maintained an average occupancy of 96.3% over the last six years.