The commercial mortgage-backed securities (CMBS) market is warming up to Manhattan\u2019s Midtown office market in the height of spring.<\/p>\n
A joint venture between Brookfield<\/a> and the Qatar Investment Authority<\/a> (QIA) has secured a $1.9 billion CMBS loan to refinance its 2 Manhattan West property that debuted in 2023. The Wells Fargo<\/a>-led deal follows a $1.8 billion CMBS refi Soloviev Group landed <\/a>for its 50-story office tower at 9 West 57th Street.<\/p>\n SEE ALSO: Private: Merchants Capital, New York City Provide $42M for Brooklyn Affordable Housing<\/a><\/p>\n The back-to-back nCMBS loans, each nearly $2 billion, reflect continued momentum for certain office assets in strong locations like Midtown Manhattan, according to David Putro, senior vice president and sector lead at Morningstar<\/a> Credit Analytics.\u00a0<\/p>\n \u201cWhile there is still a high level of distress in legacy office loans, pricing on top-tier office has stabilized and become a very favorable subsector for investors,\u201d Putro said. \u201cI think commercial real estate in general is viewed as a safe haven among all the tumult with geopolitical issues.\u201d<\/p>\n Crain\u2019s New York Business was first to report<\/a> on the 2 Manhattan West refi, which will net a cash return of $273 million for Brookfield and QIA.\u00a0<\/p>\n The 10-year loan priced at 107 basis points over the 10-Year Treasury yield at a 5.53 percent coupon, according to Brookfield.\u00a0<\/p>\n The 58-story 2 Manhattan West building is 96.3 percent leased as of April 2026 with average gross rents of $132 per square foot, according to an S&P Global Ratings<\/a> analysis<\/a> of the CMBS deal. The 2 million square-foot Hudson Yards\u00a0 property\u2019s five largest tenants include asset management firm D.E. Shaw & Company, accounting firm KPMG, law firm Cravath, Swaine & Moore, law firm Clifford Chance and Argentine bank Banco Bilbao Vizcaya Argentaria.<\/p>\n Representatives for Brookfield, QIA and Wells Fargo did not immediately return requests for comment.<\/p>\n