California Steaming
New York Observer reports: Earlier this year, the loan on the 2006 purchase of the office building at 575 Lexington Ave. was turned over to special servicing for a potential restructuring. Mortgage documents filed with the S.E.C. indicate that the assumptions underlying the Bank of America loan for $325 million were highly ambitious. Though the income for the tower was only $9.8 million in 2005, the year before it traded hands, Larry Silverstein and CalSTRS expected it to grow to $21.6 million by the loan's maturity, in October 2013, if not before. According to research firm Real Capital Analytics, "The building is in danger of imminent default."
The development site at 99 Church St., once an office building with rent coming in, is now rent-less, as Larry Silverstein searches for financing in a very rough market for hotels.
In a statement, Silverstein spokesman Dara McQuillan defended the venture with CalSTRS, noting that the fund has signed a number of new leases and suggesting that it is looking to stay for the long term.
View the full article on New York Observer: California Steaming
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Posted by: Mark Alferman