Deka debt fund buys a slice of ‘One New York Plaza’ loan

The Deka Realkredit Klassik debt fund has purchased a senior $25 million tranche of the commercial real estate loan that was used to refinance One New York Plaza in Manhattan earlier this year.

The tranche is part of a DekaBank contribution to the $750 million loan provided to Brookfield Property Partners in March, which Wells Fargo Bank led as administrative agent for a bank lending group. A DekaBank spokesperson told Real Estate Capital that its post-syndication contribution amounts to $125 million.

The 50-story, 2.5 million sq ft One New York Plaza office building is located in New York’s financial district. The property, anchored by investment bank Morgan Stanley, is almost fully leased.

“The loan is consistent with the conservative investment strategy of Deka Realkredit Klassik, which focuses on top, high-quality properties,” according to a statement from Deka. “The key characteristics of the loan are a high capacity to make repayments, good location and excellent structural condition.”

Deka Realkredit Klassik, with approximately $628 million in net assets, was launched in 2009 as the first debt fund established under German investment law. It acquires first ranking tranches of loans for existing commercial real estate. DekaBank commits to holding a subordinate tranche equal to at least 50 percent of the fund’s share for all first ranking tranches purchased by the fund.

In March, the fund acquired the senior $30 million tranche of a $71 million loan that DekaBank provided in 2015 to refinance the Wedbush Center office property in Los Angeles.