$53M Soho office building loan delinquent

New York /
Jun.June 05, 2009 03:54 PM

After the mortgage payment on the $53 million loan on the 12-story office building 625 Broadway in Soho was late, the securitized note was transferred to a special servicer, according to data from commercial mortgage research firm Trepp.  

The loan on the 84,000-square-foot office building was transferred to a special servicer March 18, Trepp information says.  

The building is owned by members of the Moskowitz family, who are principals of the Flatiron District-based property management company Argo Corporation, and held in The Name 625 Broadway Owners, according to city records and published reports.

Neither the owner nor the management company responded to requests for comment.

The value of the building shot up in recent years. Beck Street Capital bought the 1896 building in February 2006 for $36.55 million, then flipped it to the Moskowitz family in May 2007 for $60.9 million, city records show.

Kevin Comer, senior managing director at Beck Street Capital, said when he sold the building, lease expirations would leave most floors vacant within two years.

“At the time that was a good thing, but the world turned and that benefit became a detriment,” Comer said.

The Entity 625 Broadway Owners took out the $53 million loan from JPMorgan Chase when it bought the building, and that loan was securitized into a loan package, also in 2007. At that time, the special servicer was identified as Boston-based CWCapital Asset Management.

The building, between Bleecker and Houston streets, had a vacancy rate of 36 percent in December, and its net income only covered 41 percent of the mortgage payments, Trepp data shows.


Related Articles

arrow_forward_ios
55-15 Grand Avenue, Queens; Phil A. Belling of LBA Realty; Jamie Dimon of JPMorgan Chase (Getty, RXR/BL Architects)

LBA lands $316M loan for Amazon warehouse in Maspeth

LBA lands $316M loan for Amazon warehouse in Maspeth
 JPMorgan’s Marianne Lake (Getty, iStock)

JPMorgan walks back some mortgage constraints

JPMorgan walks back some mortgage constraints
JPM asset CEO Mary Callahan Erdoes and 605 Third Avenue (Getty; Google Maps)

JPMorgan eyes $600M valuation for Third Ave office tower

JPMorgan eyes $600M valuation for Third Ave office tower
Cushman & Wakefield CEO Brett White and JPMorgan CEO Jamie Dimon (Cushman & Wakefield; Getty)

Cushman’s $3B debt load poses default risk

Cushman’s $3B debt load poses default risk
JPMorgan Chase CEO Jamie Dimon (Getty, iStock)

JPMorgan wants to invest $700M building rentals in Sun Belt states

JPMorgan wants to invest $700M building rentals in Sun Belt states
Companies are relying on surveys and other data points to determine who will come back to offices first. (iStock)

How do companies decide who should return to offices first? It’s tricky

How do companies decide who should return to offices first? It’s tricky
Deutsche Bank CEO Christian Sewing and Deutsche Bank's Manhattan headquarters at 60 Wall Street (Getty)

Deutsche Bank: Employees can stay home until mid-2021

Deutsche Bank: Employees can stay home until mid-2021
Jamie Dimon and 383 Madison Avenue (Getty, Google Maps)

JPMorgan suffers setback in return to office

JPMorgan suffers setback in return to office
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...