Congestion Pricing
Commercial Observer
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New York City is about to become the first U.S. metro area to enforce tolls for most drivers coming into its central business district. The benefits to commercial real estate owners and users are already apparent — though the controversy over the plan nearly two decades in the making isn’t over. Also for today: Two major landlords extend the debt on their skyscraper.
— Tom Acitelli, Deputy Editor
Honk If You Love Congestion Pricing
In two months, the Metropolitan Transportation Authority will launch a transformative new policy that will change how people move around Manhattan, but some New Yorkers worry the city won’t be ready for it. Still, the congestion pricing plan for most vehicles for Manhattan south of 60th Street enjoys the official support of much of the city’s business community, including its commercial real estate industry. The MTA’s plan has been 17 years in the making and would mark the first time a U.S. metropolitan area will charge tolls to ease traffic congestion in its core business zone. It’s also expected to raise $1 billion in revenue annually for the New York region’s transit system while reducing traffic and slashing air pollution. But the city has made few tangible changes ahead of this once-in-a-generation shift in Manhattan’s traffic patterns.
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SL Green, Vornado Extend $1B Senior Loan at 280 Park, Buy Back Mezz at Discount
SL Green and Vornado, Manhattan’s two largest office landlords, announced Wednesday that they have modified and extended a $1.075 billion mortgage secured by 280 Park Avenue, 60-year old, 1.3-million square-foot office complex in Midtown. The borrowers also purchased the $125 million mezzanine loan secured by the property for the discount price of $62.5 million. A consortium of Korean banks provided the financing on this mezzanine debt, according to sources. The mezz loan was marketed by Newmark’s Adam Spies, Adam Doneger, Jordy Roeschlaub and Daniel Fromm and received several bids, one source said. Ultimately, the borrowers bought their own debt— a sign of their commitment to the property, the source said.
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