$187m CMBS loan trades hands with Portland’s ‘Big Pink’

An affiliate of TPF Equity REIT Operating Partnership has assumed $186.55m in securitized debt with its reported purchase of a majority stake in the US Bancorp Tower in Portland, Oregon, oft referred to as Big Pink.

An affiliate of TPF Equity REIT Operating Partnership has assumed $186.55m in securitized debt with its reported purchase of a majority stake in the US Bancorp Tower in Portland, Oregon, oft referred to as Big Pink.

bigpinkSeattle based Unico Properties, co-owner and manager of the pinkish hued, 42-story tower building — the city’s largest, at 1.1m sq ft — retains a minority share. 

The interest-only loan is the largest conduit loan in Bear Stearns Commercial Mortgage Securities Trust (BSCMS) 2006-TOP24, maturing in August of 2016 as a sliver of the vast wave of CMBS loans set to come due over the next several years.

BSCMS 2006-TOP24 carried an original balance of $1.53b, which now stands at $936m, bumping Big Pink’s portion up from about 12% at securitization to 20% today.

The deal is made up of $130m, $35m and $21.55m A, B and C slices, respectively, carrying a current 6.31 interest rate and 64.3 loan-to-value, according to data from Trepp.  

Though the Big Pink loan was added to servicer watchlist after it was announced that its lead bank tenant would be reducing its footprint almost 40%, as Trepp noted in a memo today, a review from Moody’s on August 13 stated that the sale, “in and of itself, and at this time,” would not result in a downgrade or withdrawal of BSCMS 2006-TOP24’s current ratings.  

Unico pumped a $15m renovation into the property last year, which included 15,000 sq ft of additional office space and a new public plaza. The sale price was not disclosed.

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