- Tishman Speyer and Henry Crown & Co. aim to raise $3.4B through a CMBS transaction secured by Rockefeller Center’s mixed-use office and retail properties.
- The deal is set to be one of the top five single-asset, single-borrower CMBS transactions in a decade, reflecting strong interest in prime assets.
- The 13-building complex is 92.6% leased, with tenants spread across 7.2 MSF, including iconic attractions like Radio City Music Hall and the Top of the Rock observation deck.
As reported by GlobeSt, Tishman Speyer and Henry Crown & Co. are set to raise $3.4B through a single-borrower CMBS transaction, secured by Rockefeller Center’s office and retail spaces.
According to a pre-sale report by KBRA, this transaction will cover the majority of a $3.5B fixed-rate, interest-only mortgage loan on the iconic NYC property.
The deal will be one of the largest CMBS transactions of its kind in nearly a decade, underscoring the continuing appeal of high-value commercial real estate assets.
Deal Details
The CMBS transaction is backed by a 7.2 MSF, 13-building complex, comprising Class A/A- office spaces, street- and lower-level retail, and amenities that include popular tourist destinations.
As of July 2024, the properties were 92.6% leased to over 400 tenants, reflecting stable occupancy and continued demand for prime real estate in Midtown Manhattan.
The loan will refinance $3B in existing debt, allocate $246.8M for reserves, and provide $179.8M in cash to Tishman Speyer and Henry Crown.
A portion of the complex previously secured a $1.7B loan, which was part of the GSMS 2005-ROCK transaction and was reported as fully compliant with no delinquencies.
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Deeper Dive
KBRA’s report offers a detailed financial assessment, revealing a net cash flow of $273.6M, about 18% lower than the issuer’s expectations. The valuation placed the property at $3.73B—38.9% less than the appraised “as-is” value, resulting in a loan-to-value ratio of 93.9%.
Despite these variations, the deal remains poised to proceed, reflecting confidence from investors.
The minimum required debt service coverage (DSC) for the mortgage is 1.05x, with the actual DSC calculated at 1.20x. Cap rates also varied between the issuer and KBRA, with implied rates at 5.51% and 7.34%, respectively.
Historical Context
Tishman Speyer, a global real estate company, and Henry Crown & Co., a long-standing private investment firm, have co-owned Rockefeller Center since 1996. The joint venture reflects a partnership between two entities with deep roots in real estate and finance.
Tishman Speyer manages an extensive portfolio of 82 MSF across key markets in North America, Europe, and Asia. Henry Crown & Co., founded in 1919, invests in various sectors, including real estate, publicly traded securities, and private companies.
Property Overview
Rockefeller Center remains one of the Big Apple’s most recognizable landmarks. It offers 5.5 MSF of office space, 1.4 MSF of retail space, and 280 KSF of storage space. It’s home to iconic attractions such as Radio City Music Hall, the Top of the Rock observation deck, and The Rink.
The property also features event spaces like the Rainbow Room and 620 Loft and Garden, with lower-level concourses providing easy access to shops, restaurants, and transportation links.
Why It Matters
The planned $3.4B CMBS deal for Rockefeller Center is set to be among the largest of its kind since 2014, reflecting robust investor confidence in prime CRE assets.
While the market continues to navigate economic uncertainties, this transaction highlights the enduring appeal of landmark properties and their ability to secure substantial refinancing.
