$505M Loan Extension

The owner of a prime property in Manhattan’s Times Square has secured a four-year extension on a $505 million debt package. The move is a relatively rare — and large — example of a commercial borrower getting ahead of its loan obligations. Also for today: A blockbuster deal in the senior housing space.

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Tamares Group Seals $505M Loan Extension for Times Square’s 1500 Broadway

Tamares Group just sealed a four-year extension for its $505 million debt package on 1500 Broadway in Times Square, Commercial Observer has learned. With longtime tenants “Good Morning America” and Nasdaq leaving their spaces at the building this summer, the extension will allow the owner to prepare the trophy office property — with a premium location in Times Square’s bow tie — for its next chapter with new tenants. “1500 Broadway offers a unique opportunity very few retail spaces and signs can compete with,” Tamares Group Chairman Poju Zabludowicz told CO. “We have owned this asset for 30 years. This is a new era, and we are feeling very positive about it.” The debt on the property consists of a $335 million commercial-mortgage-backed securities (CMBS) senior loan, and a $170 million mezzanine loan — held outside of the CMBS trust — from Nuveen.

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CareTrust REIT Acquires U.K. Senior Care REIT in $817M Deal

A top U.S. health care real estate investment trust (REIT) is advancing into England after it acquired another United Kingdom REIT specializing in senior housing and care complexes. Los Angeles-based CareTrust REIT purchased U.K.-based Care REIT on Tuesday in a $817 million acquisition. The deal values Care REIT’s stock at $577 million — a 33 percent premium on the $25.81 share price Care REIT closed at on Monday afternoon — and includes a debt assumption of $240 million. Care REIT presently has 137 senior care complexes and 7,500 beds in a portfolio spread across England, Scotland and Northern Ireland. The REIT works with 15 different operators that lease their buildings, which carry an average remaining lease term of 20 years and an average occupancy of 89 percent.

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