(Bloomberg) -- The partnership of Tishman Speyer and Henry Crown is returning to the bond market to refinance the Spiral office tower in Hudson Yards, less than three months after wrapping up the biggest commercial mortgage backed securities deal in years.
The sale of a $2.65 billion in bonds backed by the mortgage on the trophy property is expected to wrap up later this week, according to a person familiar with the matter who declined to be identified. An additional $200 million in debt will also be securitized in future deals, according to the person.
The proceeds will be used to refinance existing debt, which includes a $1.37 billion construction loan and $216 million owed to investors under the EB-5 visa program, according to a DBRS Morningstar report Monday. In addition, funds raised will put toward tenant reserves and returning equity to the sponsor.
Upon closing, refinancing of the Spiral — which was named after a simulacrum created by a series of terraces and setbacks — could mark the first bond sale in the single-asset, single-borrower commercial mortgage backed securities market this year. In October, a $3.4 billion bond sale backed by Speyer-Crown’s Rockefeller Center, also was closed. It was the largest such deal since 2021.
Debt sales in the sector soared under a wave of refinancings last year, as nearly $70 billion priced compared to less than $20 billion in 2023. The surge in volume came as office landlords struggled to deal with plunging valuations in the aftermath of the pandemic.
Prestige properties like the more than 1,000 foot-tall Bjarke Ingels Group-designed office tower have found it easier to secure financing compared to the broader market. Since the Spiral’s opening just over two years ago, firms have rushed to secure leases with five new tenants, including Pfizer Inc, Debevoise & Plimpton LLP, using it as their global headquarters, according to DBRS.
Joint bookrunners, Goldman Sachs Group Inc, JPMorgan Chase & Co., Wells Fargo & Co. and Bank of America Corp. all declined to comment. Tishman also declined to comment while Henry Crown didn’t immediately respond to requests for comment.
--With assistance from Charles Williams.
More stories like this are available on bloomberg.com
©2025 Bloomberg L.P.