Wednesday, April 12, 2017

UFT secures $62M loan for 50 Broadway

Someone make some sense of this. With possible loss of dues coming would you loan the UFT $62 million?


UFT secures $62M loan for 50 Broadway
BY CHRISTIAN BRAZIL BAUTISTA •   APRIL 11, 2017
Christian Brazil Bautista

An affiliate of trade union American Federation of Teachers has secured a $62 million loan for 50 Broadway in the Financial District. The ten-year, fixed rate loan was provided by Citigroup Global Markets.

The property, located between Exchange Place and Bowling Green, is a 37-story office and retail tower. The AFT affiliate, United Federation of Teachers Local 2, bought the 352,000 s/f building in 2002. Along with the acquisition, it also secured a net lease for the adjacent building at 52 Broadway. UFT and its affiliates currently lease 90,000 s/f in 50 Broadway. The trade union’s headquarters is spread out between the two buildings.

According to a press release from Cushman & Wakefield, the building, which is set to undergo lobby renovations, is currently 93.5 percent leased. Tenants in the building include the Center for Hearing and Communication and the Center for Employment Opportunities.

A Cushman & Wakefield team composed of Steve Kohn, Mark Ehlinger and Michael Collins arranged the loan.


7 comments:

  1. They're getting out of the union business and going into the real estate business.

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  2. As lein holder, Citigroup would get a great deal on some Manhattan property should the UFTdefault. And, as you said, default seems likely. In about 5 years, the UFT isgoing back to David Selden's Mom's basement in Long Island.

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  3. They're getting ready for the pd business..

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  4. Why did they borrow the money? I thought they bought the building in 2002?

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  5. Looks like Mulgrew and company needed to get their hands on some quick cash. This jibes with your recent reports about the UFT owing money to NYSUT?

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  6. Citibank is not foolish.

    It has a first mortgage on prime downtown property with a good occupancy rate and the loan probably has a loan-to-value ratio of no more than 75%--meaning that even if it has to foreclose on the UFT it will come out ahead, way ahead.

    ReplyDelete

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