Developers Joseph Sitt and Joseph Moinian are quietly considering their options as their $140 million loan on 245 Fifth Avenue is about to come due, Crain’s reported.
Moinian purchased the tower with a Whitehall fund from Goldman Sachs in 2007 for $190 million. Last April, Sitt injected funds as part of a recapitalization that left he and Moinian the sole owners. Now, the mortgage they received in that deal is looming, and the pair is shopping for an undisclosed amount.
Rents at the building never reached the heights the initial investors assumed they would, Crain’s said, but the tower, at 28th Street, has long-term potential as it is located in the Midtown South submarket, the county’s least vacant. The building is currently 85 percent occupied.
The owners have retained Doug Harmon and Adam Spies of Eastdil Secured to asist them in securing financing. [Crain’s]