Larry Gluck has struck a deal with Vornado Realty Trust to recapitalize his troubled Independence Plaza North apartment complex at 80 North Moore Street in Tribeca, sources told the Wall Street Journal. Vornado purchased $185 million in junior debt on the 1,300-unit property for $185 million, those sources said.
Gluck’s Stellar Management originally picked up the property in 2003, taking out $575 million in loans to renovate the apartments and convert them from middle-income housing to luxury rentals. Ultimately, the revenue from those rentals didn’t meet Gluck’s expectations, and earlier this year, the loan entered special servicing. There’s still some $400 million in debt that is maturing this fall.
“Stellar Management continues to engage in an amicable dialogue with various lenders to extend the overall debt on the property,” said a spokesperson for the company.
Meanwhile, Gluck is facing off in court against a group of tenants who allege that he illegally deregulated their apartments because he had been simultaneously accepting J-51 tax breaks for upgrades at the building. [WSJ]