Tamares Lands $505M Loan Extension on Manhattan Tower
The deal closed as the building is about to lose two major tenants.
Tamares Group has secured a four-year extension on the $505 million debt at its 1500 Broadway office tower in Manhattan’s Times Square. The deal closed as the London-based company is preparing to say goodbye to longtime tenant “Good Morning America” this summer.
Tamares, which also has office space at 1500 Broadway, had two loans maturing in October—a $335 million commercial-mortgage-backed securities loan that had been originated by UBS and Citigroup in October 2014 and a $170 million mezzanine loan originated in October 2014 by Citigroup and now held by Nuveen. The senior loan, previously securitized as TMSQ 2014-1500 in a single-asset, single-borrower deal, went into special servicing last summer ahead of the October maturity. Both loans have been extended with the CMBS senior loan now securitized as TMSQ 2024-1500, according to Commercial Observer.
Special servicer Rialto Capital Advisors agreed to the forbearance until Oct. 6, 2026, with two 12-month extension options, Bisnow reported. Tamares committed to pay $20 million in equity and another $20 million to cover leasing and capital expenditures to close the deal.
Iron Hound Management’s Chris Herron, Anthony D’Amelio, Jack Casper and Will Forbes led the restructuring, while SL Green Realty advised Nuveen, according to media sources.
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Tamares acquired the 33-story office tower from Pinnacle Group in September 1995 for $55 million. Built in 1972, the high-rise underwent cosmetic renovations in 1989 and 1996.
In addition to “Good Morning America,” which occupies a 66,000-square-foot studio and is relocating to Disney’s new Hudson Square campus, the 500,000-square-foot building is also losing Nasdaq. Although Nasdaq’s 53,000-square-foot lease expires in August, media reports state Nasdaq has already consolidated office space at 150 W. 42nd St. and is subleasing its 1500 Broadway space.
Tamares officials told Commercial Observer they are in preliminary talks with potential tenants for the Disney studio space and plan to expand signage and make other upgrades to the building. The tower, which has about 418,852 square feet of office space, is currently about 75 percent occupied.
Retail takes up 82,148 square feet of space. Tenants include Met Photo and Starbucks, among others.
A look at delinquency, special servicing rates
While Tamares has staved off foreclosure on its property, Trepp reports there will be nearly $151 billion in private-label CMBS loans maturing in 2025. Of that number, about $63.6 billion will need to be either paid off or refinanced.
Trepp also noted 23 percent of the looming CMBS loan maturities are in the office sector. Elevated interest rates and limited refinancing options in the lending market are expected to continue to be areas of concern for investors and lenders this year.
In the Trepp CMBS Delinquency report for January, overall delinquency rate decreased 1 basis point to 6.56 percent. The slight contraction followed six months of increases to the overall delinquency rate, which rose almost 120 points during that time.
The Trepp CMBS Special Servicing Rate also saw some improvement to start 2025. The rate decreased 2 basis points to 9.87 percent—the first decline in the monthly rate since December 2023. The rate for the office sector rose 34 basis points to 15.11 percent.
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