Tishman Speyer Nears $3B CMBS Refinancing Deal for The Spiral

According to Commercial Observer, following its successful $3.5B Rockefeller Center refinance in October, Tishman Speyer is poised to close on another large financing deal for The Spiral, its 2.8 MSF office tower in Hudson Yards. 

Deal Details

J.P. Morgan Chase (JPM) is arranging the $3B fixed-rate, five-year loan, with participation from Bank of America, Goldman Sachs, and Wells Fargo. According to Commercial Mortgage Alert, the deal is expected to close in January 2025.

The transaction will allow Tishman to pay off a $1.5B construction loan from Blackstone Mortgage Trust (BXMT) dating back to 2018, along with mezzanine debt.

High-Quality Office Demand

The Spiral, 94% leased, recently added private equity firm TPG as a major tenant with a 301.3 KSF lease. Other anchor tenants include Pfizer, HSBC, and AllianceBernstein. 

This leasing success, combined with robust investor interest, highlights the enduring appeal of premium office assets despite broader challenges in the office market.

BXMT has noted strong liquidity in office sectors, with $1.7B in office loan repayments already logged this year, driven by assets like The Spiral. The repayment of The Spiral’s construction loan is expected to let BXMT reinvest in office loans under improving lending conditions.

Why It Matters

The successful refinancing of The Spiral and other marquee properties signals a strengthening outlook for Class A office buildings in key urban markets, with liquidity returning to the office market. 

With more repayments and favorable conditions, lenders like BXMT are poised to reallocate capital to new office investments.