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The Spiral’s $2.7 Billion Refinancing Kicks Off 2025 CMBS Market

By Immanual John Milton
The Spiral office building at 66 Hudson Boulevard in Hudson Yards in New York, US, on Wednesday, Aug. 24, 2022. Empty offices have led to a cascade of shuttered restaurants and other street-level businesses that depended on daytime worker traffic. And falling building values mean less property-tax revenue for city coffers. (Amir Hamja/Bloomberg)

(Bloomberg) -- Tishman Speyer and Henry Crown have raised $2.65 billion in the commercial mortgage-backed securities market for The Spiral office tower in New York, kicking off the single asset, single borrower sector that analysts expect to post a banner year.

The bond priced on Tuesday, with the top tranche paying out a coupon of 5.47%, according to a person with knowledge of the matter, who asked not to be identified discussing private information. An additional $200 million in debt will also be securitized in future deals, the person added, bringing the total amount raised to $2.85 billion. 

The building’s owners will use the proceeds to refinance existing debt, pay for tenant reserves and return equity to sponsors.

The Spiral’s refinancing marks the first transaction in the private-label CMBS market this year, with many more expected. Nearly $1 billion of US commercial real estate mortgages are estimated to mature in 2025, according to an S&P Global Market Intelligence analysis of nationwide property records in September.

Analysts at JPMorgan Chase & Co. are forecasting the SASB market to hit a record $85 billion in annual issuance this year, adding onto momentum that propelled last year’s issuance to almost $70 billion, according to data compiled by Bloomberg News.

Representatives for Goldman Sachs Group Inc. and JPMorgan, bookrunners on the deal, declined to comment, while representatives for Tishman and bookrunner Bank of America Corp. did not immediately provide comment. Henry Crown and bookrunner Wells Fargo & Co. did not respond to requests for comment.

Blue-chip properties like The Spiral, named after the tower’s series of terraces and setbacks, have seen better reception in scoring financing compared to lower-tier buildings. The Rockefeller Center — another Tishman and Henry Crown building — marked the largest private-label CMBS bond sale since 2021 when it closed in October, while luxury hotel Fontainebleau Miami Beach sold nearly $1 billion of CMBS debt in December. 

--With assistance from Charles Williams.

©2025 Bloomberg L.P.