Landmarked Financial District Tower Fails To Pay Off $250M Loan At Maturity
Despite high occupancy from major tenants at 25 Broadway, the $250M loan backing the nearly 1M SF office building has been moved to special servicing.
The Wolfson Group, the owner of the landmarked Financial District tower, failed to pay the loan off at maturity, according to Morningstar Credit, triggering the move to special servicing. Wolfson said it wouldn't be able to pay off the loan at its maturity date on April 6, according to servicer commentary.
Wolfson representatives didn't immediately respond to requests for comment via email or LinkedIn messages.
The default has occurred despite the building being 92% occupied, with minimal near-term rollover risk among its tenants, although City College of New York had executed an extension on its space only through May, according to Morningstar Credit.
“The most recent financials paint a pretty rosy picture,” the financial services firm said of 25 Broadway, which had an appraised value of $369M in 2014.
The borrower had submitted a request for a maturity extension last December, but no extension has been reached. Now the special servicer has been tapped to review the loan.
The 22-story tower, known as the Cunard Building, houses Cipriani’s event space, including a 12K SF great hall. WeWork occupied 86K SF in the building, but upon vacating in 2021, it was replaced by a 44K SF Industrious.
The building is a designated landmark, with its main entrance on Broadway facing Bowling Green Park and Wall Street’s Charging Bull sculpture.
The default comes as reappraisals hit office landlords. Morningstar also reported that the value of Cohen Brothers Realty’s 750 Lexington Ave. has been slashed from $300M in 2015 to $50M. The $130M loan backing the Midtown property has also been sent to special servicing, as Cohen has fallen three months delinquent on payments.
