McGraw-Hill residential conversion unaffected by Signature Bank failure

We reported last week that the owners of the landmarked McGraw-Hill building at 330 W. 42nd St. were putting their planned, partial residential conversion on the fast track.

It so happened that a performing $140 million loan on the property was being marketed for sale by Newmark, as the Commercial Observer previously reported. The lender was none other than Signature Bank, which was acquired by the FDIC last week.

Might the bank failure in any way affect the $100 million conversion?

Gerard Nocera, a managing partner at the tower’s asset manager Resolution, told the CO that it would not: “We’ve been current on that loan, [we will] stay current on that loan. It’s at a very good rate in today’s world, so we’re happy with that and we plan to extend it.”

But Signature was a prime holder of commercial debt in the city. We can only wonder whether its failure will impact other properties less stable and less fortunate than McGraw-Hill.