Bank of America and Wells Fargo are once again leading the way in a recent surge of 10-figure Manhattan office securitizations. According to published reports, they will be refinancing the MetLife Building at 200 Park Ave., which spans three million square feet. This is not the first time this property has been refinanced; it was last done for $1.4 billion in 2015.
The new refi, valued at $1.5 billion, is being undertaken on behalf of the Irvine Company, who took over sole ownership of this iconic Midtown Manhattan tower last summer. The interest rate for this loan is expected to be around 6.25%, a significant increase from its previous rate of just 3.6% ten years ago when it was first financed.
Kroll Bond Rating Agency (KBRA) has assigned preliminary ratings to four classes within a single-borrower CMBS transaction called IRV2025-200P CMBS that involves financing for this property specifically.The agency’s analysis showed that there would be an estimated net cash flow of $134.l million generated by the building -18 .4% lower than what was projected by its issuer- and KBRA also determined that its value would come out to approximately $1 .91 billion.This figure represents a decreaseof about25.S % comparedtothe appraiser’s as-is valuation.
In summary,the MetLife Buildingis poisedfora$1.S-billionsecuritizedrefinancing with BankofAmericaandWellsFargotakingthefrontseat.Thisisnotthebuilding’sfirstrefinance,andthisnewloanwillcomewithaninterestrateof6.ZS%.KrollBondRatingAgencyhasassignedpreliminaryratingstoafourclasseswithinthesingle-borrowerCMBStransactioncalledIRV202S-ZOOPCMBSwhichwillprovidefinancingforthisproperty.KBRAestimatesanetcashflowof$134.1millionandavaluationofapproximately$1.91billion,representinga25.S%decreasefromtheappraiser’svaluation.
