Manhattan’s office market is tracking towards its best year of leasing since the pandemic. Investors appear to be taking notice.
Jack Resnick & Sons locked in $147 million in fresh commercial mortgage-backed securities financing for its Lower Manhattan office building at 255 Greenwich Street, the Commercial Observer reported.
Morgan Stanley and Société Générale originated the 10-year loan to retire existing debt from MetLife on the 14-story, 600,000-square-foot property, developed by the Resnick family in 1987.
The building, adjacent to One World Trade Center, has seen strong leasing traction despite broader market headwinds. In May, information technology firm Pearson VUE signed a 10-year lease for office space at the property, joining anchor tenants including Cornell University, Icahn School of Medicine at Mount Sinai, the City of New York — a trio of city government offices renewed their collective lease for the sixth through ninth floors of the building in 2023 — the City University of New York and Target.
An Avison Young tristate debt and equity team led by Scott and Andy Singer arranged the financing. The group also handled the prior loan a decade ago through the Singer & Bassuk Organization, which Avison Young acquired in 2021.
Scott Singer called the deal a continuation of Resnick’s “legacy of excellence,” adding that Morgan Stanley and Soc Gen delivered a “smooth execution.”
“The successful refinancing of 255 Greenwich, which Jack Resnick & Sons developed nearly 40 years ago, is a testament to the attractiveness and vitality of Lower Manhattan,” president Jonathan Resnick said in a statement.
Tenants in Manhattan signed deals for 3.6 million square feet in October, up by a third from September, according to a Colliers report. That put the year-to-date demand at 33.7 million square feet, already surpassing last year’s total; if the pace holds, this year could mark the first time since 2019 that annual leasing activity tops 40 million square feet.
— Holden Walter-Warner
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