From left: 1330 Avenue of the Americas, 527 Madison Avenue (Source: PropertyShark). The buildings were part of a portfolio of Anthracite loans on which BlackRock lost millions last year.

Struggling real estate investment trust Anthracite Capital filed for Chapter 7 bankruptcy liquidation yesterday, the company announced. As Crain’s reported, the BlackRock affiliate, which made real estate loans and bought debt from other lenders, defaulted on its debt and was delisted from the New York Stock Exchange just a few months ago. Shareholders are not expected to recover anything, and any value recovered by unsecured creditors “would be minimal,” the firm said in a statement. BlackRock, a publicly-traded asset management firm based in Midtown, said last year that it expected to lose $53.2 million on two Anthracite loans for five present and former Macklowe Properties office buildings, including 1330 Avenue of the Americas, which Macklowe has since lost to foreclosure, and 527 Madison Avenue, which Macklowe sold. Richard Shea, Anthracite’s president and chief executive, is a managing director at BlackRock. TRD
[more]

Investors are returning to the Manhattan real estate market to pick up property at a discount, according to WNYC’s Lisa Chow. In addition to Fortress Investment Group’s purchase of Sheffield 57 at auction last week, a unit of Canada’s largest pension fund purchased 1330 Avenue of the Americas. A private equity firm purchased 1540 Broadway. Experts expect to see more of these kinds of sales, which are occurring at 40 to 50 percent discounts.

With few commercial building sales taking place, the foreclosure
auction of the $130 million mezzanine note at the former Macklowe
Properties office tower 1330 Avenue of the Americas in April was a
critical market indicator. Kevin O’Shea, who made the winning
bid for the note on behalf of the victor, is the managing partner at
international law firm Allen & Overy’s New York office. The firm
represents Canadian pension fund Otera Capital, the owner of the note.
O’Shea also arranged the purchase of debt on the John Hancock Tower which allowed Normandy Real Estate Partners and Five Mile Partners to buy the Boston office tower in a foreclosure auction in April. O’Shea spoke to The Real Deal about the auction and tensions breaking out among mezzanine note holders, which the industry refers to as tranche warfare. [more]