Kent Swig

Savanna Investment Fund has purchased the senior mortgage loan on Kent Swig’s troubled 80 Broad Street office tower at a discount and is likely to begin foreclosing on the property within the week. Sources told the Post that Savanna received a 12 percent discount off of the $75 million face value of the loan, which has been in special servicing with J.E. Robert Companies since last winter. Swig led a partnership that purchased the 410,000-square-foot building for $70 million in 2004, but by 2010, the property was appraised for just $67 million and entered into “covenant default” even though Swig was still making mortgage payments at the time. [more]

Kent Swig and 25 Broad Street

Kent Swig’s stalled condominium conversion project at 25 Broad Street is back in action as a rental building. A court-appointed receiver has tapped developer LCOR to put the 20-story building back on the market, and according to the Wall Street Journal, the leasing office opens today. The project offers 305 one- and two-bedroom units, with 35 different floor plans and rents starting at $3,133 and $5,205 per month, respectively. There are also hefty concessions: one month’s free rent, plus the elimination of broker fees for renters who sign on for one or two years. [more]

Kent Swig and 25 Broad Street

Lehman Brothers Holdings is seeking approval from the judge handling its bankruptcy case to restart Kent Swig’s stalled condominium conversion project at 25 Broad Street and turn the building into rental apartments. According to Bloomberg News, the bank said in a court filing that it plans to foreclose on both the conversion and on an adjacent development parcel at 45 Broad Street, and wants to invest $25 million to finish the job. Lehman has already poured $39.9 million into 25 Broad Street since Swig defaulted in 2009. As part of completing the 281-unit project, the bank would demolish the building’s south wing and transfer its 64,000 square feet of development rights to 45 Broad in order to attract potential buyers for the latter parcel. Comments

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From left: Square Mile co-founders Craig Solomon and Jeff Citrin

From the March issue: In 2007, a little-known real estate fund called Square Mile Capital Management made $38 million in loans to Kent Swig, then a red-hot New York City real estate player, for him to complete his high-profile condo conversions at both the Sheffield and 25 Broad Street. Square Mile forced Swig to pledge equity in his condos as collateral for the funds, but by 2008, Swig’s empire was beginning to crumble, and Square Mile moved swiftly to collect. The lender alleged that Swig not only defaulted on a loan backed by 25 Broad Street, but overstated his true investment in the Sheffield, constituting fraud. Square Mile won a massive $28.4 million judgment against Swig and proceeded to shake down every asset he owned in New York. [more]

Swig Equities has inked a one-year deal with a clean energy provider to equip 80 percent of its Financial District office properties with green electricity from sustainable sources, company president Kent Swig announced yesterday. The agreement, with Green Mountain Energy, is the first of several energy reduction programs Swig plans to introduce this year, including efforts to cut water consumption, use green cleaning materials and recycle. Swig, whose Downtown office portfolio includes 110 William Street, 90 Broad Street, 80 Broad Street and 48 Wall Street, called the plan “a sound business decision on all levels.” TRD

1140 Sixth Avenue and Laurence Gluck

It’s a good day for investors looking to pick up commercial property debt: in addition to the $75 million senior mortgage at 80 Broad Street that just came on the market, Crain’s reported that a $116 million senior loan at 1140 Sixth Avenue is also about to hit the block. The 22-story building, owned by Laurence Gluck’s Stellar Management and Rockpoint Group, sits on the corner of West 44th Street and according to Jones Lang LaSalle’s Scott Latham, it is likely to draw “tons of interest” and as much as $600 per square foot. [more]

Kent Swig and 80 Broad Street

The defaulted $75 million senior mortgage loan on Kent Swig’s 80 Broad Street is officially up for sale through Cushman & Wakefield, confirming rumors that surfaced last month and setting the stage for a potential takeover from a buyer, the Post reported. Last year, the loan was transferred to special servicer J.E. Robert Company after it was determined to be in “imminent default” by Fitch Ratings. While Swig’s loan payments are still current, the tower is still in “covenant default.” According to Real Capital Analytics’ Dan Fasulo, Swig would “have to work magic to keep this one” because whoever buys the senior mortgage will likely be looking to wrest control of the building. [more]

The Sheffield

Newly relaunched condo conversion the Sheffield, which is revamping its image after several years of bad PR during Kent Swig’s tenure, has announced a partnership with Saks Fifth Avenue that confers privileges on the building’s residents.

According to the Marketing Directors, the building’s exclusive sales agent, Sheffield owners now have access to special events at the department store, including a “match-making event” at the end of February in which residents will be paired with their own “personal styling consultant.” TRD [more]

All Post columnist Steve Cuozzo wants for Christmas is more progress at the World Trade Center site. Among the items on his year-end holiday wish list for the rest of Manhattan: “another Google-size office building purchase,” “a resolution to the mess at the former Drake Hotel site,” and “an iPhone app with real-time updates on Joe Moinian’s and Kent Swig’s mortgage status at various buildings just so we can stop annoying their publicists every week.” [more]

Swig and 80 Broad Street

JER Partners is set to market the $75 million mortgage on Kent Swig’s 80 Broad Street, sources say, putting the embattled developer at risk of losing the 36-story office building. Swig defaulted on the loan earlier this year, according to Crain’s, and could lose control of the Lower Manhattan property should a buyer pick up the note and decide to foreclose. This isn’t the first time that Swig’s ownership of 80 Broad Street has fallen into jeopardy — this summer, a mezzanine lender attempted to foreclose on the building. [more]