E
dward J. Minskoff Equities secured a crucial loan modification on 1166 Sixth Avenue, with lender Wells Fargo showing confidence in the firm's plan to fill a significant vacancy. The bank adjusted three loans totaling $235 million, extending maturity dates and interest rates. On one of these loans, an $11.5 million project loan from 2019, Wells Fargo reduced the balance by $10 million.
The modifications may prove vital for EJME as it navigates challenges at the property. Securitized debt on 1166 Sixth landed in special servicing this summer due to a major tenant's departure. The building's top tenant, hedge fund D.E. Shaw, had leased two-thirds of the tower. With revenue covering only 1.3 times monthly mortgage payments, EJME submitted a workout proposal and negotiated with Wells Fargo.
The loan modification gives EJME more time to find new tenants for 1166 Sixth. The firm is marketing seven empty floors as a potential two-story atrium and gallery that would open onto a small park.
