***This blog entry is a guest post from PropertyShark.com and contains data developed by their analysts. PropertyShark.com aggregates real estate data and listings from hundreds of public and proprietary sources into an easy-to-use yet comprehensive property research website covering a dozen major markets.***
A recent survey done by loan officers at Federal Reserve informs us that since the beginning of February 2012, banks — domestic banks in particular — have started to ease loan standards for the commercial real estate sector. At PropertyShark.com, we searched for the biggest five commercial mortgage loans in NYC from January to the end of April 2012 and compared them to the loans secured during the same period last year to see what the changes are.
The data shows that waters remained rather still this year except for two blockbuster loans in April. The rest of the loan activity stayed within last year’s patterns, when none of the commercial loans surpassed $175,000,000.
The biggest mortgage loan this year amounted to $520,000,000, with New York State Fund Housing Agency as lender. With it, real estate developer Gotham Organization is set to bring a change in the West Side’s residential landscape, as the massive housing project at 550 West 45th Street is expected to offer more than 1,000 affordable and luxury residential units at one address.
The second was secured against the 53-story tower at 1515 Broadway. Right before media giant Viacom paid a whopping amount to renew the lease of this entire building, the landlord, SL Green, obtained a loan of more than $320,000,000 from the New York branch of Bank of China. This is not the first mortgage SL Green, the largest office landlord in NYC, receives from the Chinese lender.
Are these two loans going to set a trend? It might be too early to tell, but they sure rocked the boat a little.
As a lender, Deutsche Bank has proven quite active during this time. In March 2012, it added to its lending books a $142,148,560 mortgage secured against the 7-story office building at 10 East 52nd Street, Manhattan, after one of its subsidiaries, the German American Capital Corporation, had financed in February a $125,000,000 loan going to The Solow Building in Manhattan.
Last year during the period January-April the highest mortgage loan was the $175,000,000 associated with The Milford Plaza Hotel in Manhattan. Foreign banks competed again with the domestic ones, Deutsche Bank appearing once more as one of the main lenders, with a $125,000,000 mortgage loan going to The Sheffield at 322 West 57 Street, one of the most sought-after condo buildings in Midtown Manhattan.
Here are the rankings for the highest commercial mortgage loans for January-April 2011 and 2012:
NYC Top 5 New Mortgages in January 2012-April 2012
NYC Top 5 New Mortgages in January 2011-April 2011