UBS AG (UBSN) is teaming with Wells Fargo & Co. (WFC:US) to provide a $450 million loan on a Manhattan tower as the bank seeks to maintain its footing in the commercial-mortgage bond market following employee defections in April.
Switzerland’s largest lender plans to package the seven-year mortgage on 11 Penn Plaza into securities, according to two people with knowledge of the transaction, who asked not to be identified because it hasn’t been announced. The offering will be marketed to investors in December, one of the people said.
The transaction would rank among the largest commercial-mortgage bond deals for UBS since a group of bankers including Ken Cohen, who had run the team since 2011, left earlier this year after the bank cut bonuses. The Zurich-based lender is boosting its presence in the $550 billion market, in which issuance of bonds linked to everything from malls to skyscrapers poised to double to $70 billion in 2013, according to Credit Suisse Group AG.
Megan Stinson, a spokeswoman for UBS in New York, and Jen Hibbard of Well Fargo said they couldn’t comment.
Vornado Realty Trust (VNO:US)’s 11 Penn Plaza is a 23-floor office building across the street from Madison Square Garden and Penn Station. Macy’s Inc., which operates its flagship department store two blocks away, renewed a lease for 646,000 square feet at the property in February.
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