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Demand for NYC Trophy Office Tower CMBS Allays Pandemic Concerns

  • Interest is strong for debt linked to high-rise building
  • Tower boasts solid tenants and long-term leases: Moody’s
One Manhattan West
One Manhattan WestSource: Brookfield Property Partners

In the midst of a pandemic that has pundits debating the future demand for urban office towers, a conglomerate of investment banks is currently marketing a $1.5 billion commercial mortgage-backed security backed by a new trophy high-rise tower, One Manhattan West, part of the Hudson Yards redevelopment in New York.

The transaction has already been oversubscribed in preliminary marketing, from the AAA tier all the way down to a BB tranche, according to an investor familiar with its performance. One slice rated Baa3/BBB by both Moody’s Investors Service and DBRS Morningstar, respectively, was already more than nine times covered, the investor said, citing a deal status report from the arrangers.