A prospectus filed by Citigroup Global Markets Inc and Goldman, Sachs & Co for Citigroup Commercial Mortgage Trust 2014-GC25 provides details on the pool’s top loans, including a $49 million first mortgage loan on 6010 Bay Parkway, an office building located in Brooklyn, New York.
The 6010 Bay Parkway property consists of a nine-story, Class A medical office building totaling 85,178 square feet. The property is on a 0.46-acre rectangular parcel with 200 feet of frontage along Bay Parkway and an additional 100 feet of frontage along both 60th Street and 61st St.
According to the appraisal, the 6010 Bay Parkway Property had an “as-is” appraised value of $65.5 million as of an effective date of July 9, 2014.
The $49 million loan on the asset was originated by MC-Five Mile Commercial Mortgage Finance LLC on September 19, 2014. The note has an interest rate of 4.7500% per annum.
The proceeds of the 6010 Bay Parkway Loan were used to refinance existing debt on the 6010 Bay Parkway Property, to pay closing costs, to fund reserves, and to return equity to the 6010 Bay Parkway Loan borrower.
The borrower is BP Group DE LLC, a single-purpose, single-asset entity. The guarantor of the non-recourse carveouts is Mark Caller.
As of September 19, total occupancy and owned occupancy rates for the 6010 Bay Parkway Property were both 100 percent. The two largest tenants, Maimonides Medical Center and Brooklyn SC, LLC executed their initial leases in 2011 and the 6010 Bay Parkway Property was more than 70.0 percent leased prior to completion of construction in 2013.
The majority of the property, 83,594 square feet, is built out as medical office. The ground floor also includes a retail pharmacy and a cafe. The property also has a three-level parking garage with 179 parking spaces, or 2.10 spaces per 1,000 square feet.
The 6010 Bay Parkway Loan had an initial term of 120 months and has a remaining term of 120 months as of the Cut-off Date. The scheduled maturity date is the due date in October 2024. Voluntary prepayment of the 6010 Bay Parkway Loan without payment of any prepayment premium is permitted on or after the due date in July 2024.
The 6010 Bay Parkway Property site was a gas station from 1958 until approximately 1983, so an environmental consultant performed a Phase I environmental site assessment at the 6010 Bay Parkway Property on July 21, 2014. The Phase I identified the following historical recognized environmental conditions associated with a closed spill listing and former underground storage tanks.
In December of 2006, a subsurface investigation was completed in conjunction with a redevelopment of the 6010 Bay Parkway Property. Airtek’s investigation identified soil contamination at the north end of the 6010 Bay Parkway Property and contaminated groundwater at the south end of the 6010 Bay Parkway Property.
The test results were reported to the New York State Department of Environmental Conservation (“NYSDEC”), which documented the case as NY Spill No. 0610564.
In compliance with the NYSDEC’s requirements (removal of contaminated soils, installation of a vapor barrier, sub-slab depressurization system, endpoint samples within limits of the excavation, and delineation of the soil and groundwater contamination), Airtek completed a site remediation plan on January 11, 2007 and installed groundwater monitoring wells. During excavation at the site, 12 USTs from the former gas station were discovered and removed. These tanks are registered with the NYSDEC under Petroleum Bulk Storage No. 2-610693 and are identified as closed/removed as of June 19, 2007.
The 6010 Bay Parkway Property was further remediated, including complete removal of the contamination, closure of the monitoring wells, installation of a vapor barrier, and collection of endpoint samples. As of October 7, 2011, all of the items under the work plan had been completed and the NYSDEC granted closure of the case requiring no further action. Based on the remediation actions taken, no further action is recommended by the environmental consultant under the Phase I.