7 World Trade Center to go into a CMBS deal

CMAlert reported that Silverstein is looking to refinance the current Liberty Bond structure into a CMBS deal structured similarly to OBP, but with JPM.

The building hit 100% occupancy on the 10th anniversary of 9/11 when MSCI (the owner of the like-named indices) signed a new lease for 125k sf on the top floor.

As long as they will stop saying things like "it's the safest building in the country", inviting some twisted Titanic karma, it should make for great collateral. Of course, that is also what BOA thought in mid-2001 when it wrote the loan on the last building that was destroyed on 9/11.

Running Aground

The BOAT (aka One Bryan Park, Bank of America Tower) debt is finally being marked by BAML and JPM as a $650mm 10-year pass-through. They'll also issue a $650mm 2010 Liberty Revenue Refunding Bond split into a $351.6mm Class 1, $87.1mm Class 2, and a $211.3mm Class 3.

It's structured as an ARD, and refinances the existing debt + $25mm that's being used for "general corporate purposes (but don't focus on that, just trust us)"

$1.28 billion CMBS loan in the works

The $1.28 billion 10-year balloon is reportedly close to being done.

Bank of America will refinance the 51-story office tower it co-owns with the Durst Organization on Bryant Park with help from J.P. Morgan Chase & Co., sources close to the deal said.

The refinancing comes a mere 10 months after the owners refinanced the Bank of America Tower at One Bryant Park with a $1.28 billion, three-year loan. Sources say this time the owners are seeking a 10-year loan for $1.3 billion that will be partially securitized and sold to a variety of investors.

Maybe there was some concern that is beyond my scope of reasoning, but why is JP underwriting this loan when the building houses most of BOA's CMBS operation? I have some thoughts on the matter, but will leave it open for discussion...