$300M Bush Terminal Loan Transferred to Special Servicer
Posted January 19, 2011
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A $300 million loan on the Bush Terminal in Brooklyn, NY has been transferred to a special servicer due to monetary default, according to Fitch.
According to the documents related to the loan, it is secured by a first mortgage encumbering Bush Terminal, which is located on various blocks between 32nd and 41st Streets and 1st through 3rd Avenues in Brooklyn. The Bush Terminal Property consists of 16 multi-story office, loft and industrial buildings containing a total of 6.15 million sf of gross building area. The buildings were constructed at various times starting in 1904 on approximately 35 acres of land. The Bush Terminal Property was 85 percent occupied by tenants such as the NYC DCAS HRA (2.9% of NRSF), Virginia Dare Extract Co. Inc. (2.6%) and NYC Department of Finance (2.5%) when the loan was secured.
The borrowers are 1-10 Industry Associates LLC and 19-20 Industry City Associates, LLC, each a single-purpose, single-asset entity. The sponsors of the borrowers are Rubin Schron and Abraham Fruchthandler. At the time the loan was distributed, Rubin Schron had approximately $1.5 billion of equity in more than 40 residential, retail, commercial and healthcare assets primarily located throughout the New York metropolitan area, including over 15 million sf of industrial space.
Abraham Fruchthandler is a principle of FBE Limited, a private investment partnership formed in the 1970s as an investment-holding vehicle for the Fruchthandler family. The FBE portfolio included industrial properties totaling approximately 20 million sf in addition to a residential portfolio of approximately 4,000 apartments and interests in 6 office buildings.
The loan was originated on September 20, 2007 by Goldman Sachs Commercial Mortgage Capital, L.P. and was subsequently purchased by Goldman Sachs Mortgage Company. The Bush Terminal Loan provided for interest-only payments for the duration of the loan term. The loan matures on September 6, 2017.
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