Deutsche Bank, UBS and Jefferies LoanCore have filed a prospectus for the commercial mortgage-backed securities (CMBS) transaction COMM 2014-UBS5 Mortgage Trust, which is comprised of 70 mortgage loans secured by 94 commercial and multifamily real estate properties with an aggregate initial pool balance of $1.42 billion.
Included is information on Loan No. 11, a $40 million refinance for 412 West 14th Street in the Meatpacking District of Manhattan.
The first payment for the interest-only loan is due October 6, 2014.
Located in the immediate area of the High Line, 412 West 14th St is fully leased to Toyota Motor Sales, U.S.A., Inc. The lease, dated April 9, 2014, has an expiration date of May 14, 2018 with one three-year renewal option.
Toyota plans on spending approximately $19.5 million outfitting the space, which will be a lifestyle concept store and will be used to sell Lexus-themed products and include a café.
The 16,603 square foot building was first developed in 1900 and renovated in 2002. An appraisal on June 25, 2014 valued the asset – assuming Toyota has finished furnishing the space and moved in – at $63 million.
The building is currently still occupied by its previous tenant. Toyota will take occupancy upon such tenant vacating. In the event Toyota does not take occupancy by July 15, 2015, the loan will be recourse to the guarantors.
The sponsors and the nonrecourse carve-out guarantors are Yaron Jacobi, Uzi Ben-Abraham and Joseph J. Sitt. Yaron Jacobi and Uzi Ben-Abraham founded Premier Equities, a commercial real estate investment firm with a current portfolio of 22 properties in New York, New York and Miami, Florida. Joseph J. Sitt is the founder and CEO of Thor Equities, a company that specializes in urban real estate projects and public/private partnerships in the United States, Latin America and Europe.
Premier Equities and Thor Equities bought the commercial condominium in April 2012 for $18 million, according to therealdeal.com.
In the event Toyota does not renew its lease, a master lease between the borrower and the guarantors, jointly and severally, which was established at closing, will spring into effect.