Ex WeWork Building 25 Broadway Defaults on $250M CMBS Loans

A $250 million commercial mortgage-backed securities (CMBS) loan tied to 25 Broadway, an iconic Manhattan office building, has defaulted upon its April maturity. The building, previously occupied by WeWork, is now in special servicing, according to a recent Trepp report.

Loan Structure and Default

The CMBS loan comprises two segments: a $130 million portion and a $120 million portion, both integral components of separate CMBS conduit packages. The borrower missed its April maturity deadline and demonstrated an inability to secure refinancing, following the denial of an earlier maturity extension.

WeWork's Departure and Property Description

In February 2021, WeWork vacated approximately 86,000 square feet of the 22-story, 956,000-square-foot building, known as 25 Broadway. Originally named the Standard & Poors Building and now called The Cunard Building, it was constructed in 1921.

Architectural Significance

The architectural design of 25 Broadway reflects Italian Renaissance influences, characterized by its limestone facade, center arches, and multiple setbacks. This style symbolizes the peak era of American urban construction in the early 20th century, leading to the building's designation as a New York City landmark in 1995. Its Beaux-arts lobby, inspired by Roman bathhouses, now hosts events for Cipriani.

Historical and Recent Tenants

The building has hosted renowned tenants throughout its history, including the Cunard Steamship Line, Anaconda Copper, and the New York Central Railroad. Later occupants included Standard & Poors and the City College of New York. Recent tenants include Industrious, Wolfson Group, Cipriani, and Moment Factory, with Industrious leasing 44,000 square feet in June 2022.