Tishman Speyer’s Jacx Loan Sent to Special Servicing

8 minutes read

Tishman Speyer refinanced The Jacx in Long Island City five years ago. The maturity bill is coming due imminently.

The $425 million mortgage backing the pair of 26-story office buildings in the Queens neighborhood was transferred to special servicing, Crain’s reported, citing Morningstar Credit Analytics. The debt is set to mature in September and Morningstar predicted refinancing it “would be challenging” due to its vast vacancy.

Nevertheless, Tishman is taking ownership of the special servicing decision, saying it requested the move “to facilitate a mutually beneficial extension agreement.”

The two-building complex, which opened fully leased in 2019, cost Tishman about $650 million to develop. In 2021, the developer refinanced the 1.2 million-square-foot office and retail development with a $425 million CMBS loan originated by Bank of America.

The largest tenant at 28-07 Jackson Avenue, Macy’s, leased 54 percent of the property, but never moved in after the pandemic and has been looking to sublet its space. It does continue to pay approximately $50 per square foot in rent for its 600,000-square-foot footprint.

Another major tenant was WeWork, until the co-working company went bankrupt and abandoned its lease for 20 percent of the property’s space. Tishman replaced WeWork with its own co-working brand.

The Jacx also features an underground parking garage, 47,000 square feet of retail, a one-acre, landscaped terrace and an enclosed pavilion. The development is located atop the Queens Plaza subway station.

Point72 Asset Management — New York Mets owner Steve Cohen’s firm — signed a lease for 60,000 square feet at Tishman’s The Spiral in Hudson Yards. The deal, which had a starting rent of $130 per square foot, added to Point72’s existing footprint, where it already leased more than 175,000 square feet at 55 Hudson Yards.

Elsewhere in Long Island City, Fetner Properties and the Lions Group recently secured a $111 million bridge loan from PGIM Real Estate to refinance their rental building, Bold.

The 28-story property, located at 27-01 Jackson Boulevard, features 164 units with 50 designated as affordable and includes amenities and ground-floor retail space.

— Holden Walter-Warner