Banks bring large CMBS deal for NYC’s second tallest office tower – International Financing Review

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A group of banks led by Wells Fargo and Goldman Sachs are marketing a mega commercial mortgage-backed bond for a US$3bn financing package for a newly-built and second tallest office tower in New York City.

The deal will likely test investor appetite for office CMBS as some companies are planning to bring workers back to the office as more people have received the Covid vaccines. The SASB deal was announced on Wednesday and is expected to price next week, a buyside source said.

The single-asset, single-borrower transaction, SLG Office Trust 2021-OVA, will raise money to refinance a US$1.4bn construction loan on the property in midtown Manhattan, called One Vanderbilt. Proceeds will also be used to return US$1bn in equity to its sponsors and fund upfront reserves totaling US$70.9m for outstanding costs and US$151m for free and gap rent.

The rest of proceeds will fund other lease and improvement costs, Fitch said in a pre-sale report.

There remain concerns about a structural decline more...