Goldman Sachs is in the market with a $675 million of bonds backed by a loan that is secured by the borrower’s fee interest in a Midtown Manhattan office building.
The building is located in New York City’s Plaza District at 650 Madison Avenue. The loan was co-originated by Goldman Sachs Mortgage Company and German American Capital Corporation on Sept. 30, 2013.
Kroll Bond Rating Agency (KBRA) has assigned the deal, dubbed Madison Avenue Trust 2013-650M preliminary ratings. The class A notes are rated ‘AAA’, the class B notes are rated ‘AA-’, the class C notes are rated ‘A-’, the class D notes are rated ‘BBB-’ and the class E notes are rated ‘BB-’.
According to the presale report, the Madison Ave. property is a 27-story building containing 503,872 sf of office space, 54,571 sf of retail space and 36,027 sf of storage space. The property was built in 1957. It was renovated and expanded by 19 stories in 1987.
As of September 2013, the building was 91.3% leased to seven office tenants and three retail tenants. The largest tenant is Polo Ralph Lauren, a High Quality Credit-Worthy Tenant (HQCWT) that leases 46.0% of the total sf for its global headquarters.
Other major tenants include Memorial Sloan Kettering Cancer Center (HQCWT, 16.9%) and Crate & Barrel (10.3%).
The collateral is being acquired by affiliates of Vornado Realty Trust and Oxford Properties Group in a joint venture with other limited partners, according to the presale report.
