According to reports, Bank of America and Wells Fargo will once again lead the refinancing of the MetLife Building at 200 Park Ave. This comes after a recent surge in 10-figure Manhattan office securitizations. The property, which spans three million square feet, was last refinanced for $1.4 billion in 2015.
The new $1.5-billion refi is being done on behalf of the Irvine Company, which acquired full ownership of the iconic Midtown Manhattan tower last summer. It is expected to have a fixed interest rate of 6.25%, significantly higher than its previous rate of 3.6% from ten years ago.The loan has a term length of ten years and will be interest-only.
KBRA (Kroll Bond Rating Agency) has assigned preliminary ratings to four classes within this single-borrower IRV-2025-200P CMBS (commercial mortgage-backed securities). Their analysis showed that the property’s net cash flow would be $134.l million -18/4% lower than what was projected by issuers – with an estimated value by KBRA at approximately $1 .91 billion.This value is also significantly lower than what appraisers had initially predicted for as-is valuation: around$2 .56 billion.
In summary,the MetLife Building is poised for a significant securitized refinance worth$1 .5billion led by BankofAmericaandWellsFargo.ThisispartofarecenttrendinManhattanofficesecuritizationsof10figures.Thepropertywaslastrefinancedfor$1 .4billionin2015andnowtheIrvineCompanywilltakeoverfullownershipafteracquiringthetowerlastsummer.Thefixedinterestrateisexpectedtoincreasefrom3.S%adecadeagoto6.ZS%.KBRAhasassignedpreliminaryratingstothefourclasseswithintheIRV-2025-200PCMBSandtheiranalysisshowedalowerestimatedvalueof$1.91billioncomparedtotheinitialappraisedvalueof$2.56billion.Thisrefinanceisexpectedtohaveaten-yeartermwithinterest-onlypayments.
