Fitch downgrades Moinian and Sitt Asset Management office towers

New York /
Dec.December 11, 2009 01:08 PM

Fitch downgraded a group of securitized loans from Wachovia Bank that includes a Flatiron office tower owned by Joseph Moinian and a Midtown office tower owned by Sitt Asset Management.

The ratings agency downgraded eight loans by Wachovia Bank Commercial Mortgage Trust series 2005-C19, citing concerns about declining cash flows and commercial real estate values.

One Moinian loan is backed by the developer’s 13-story office tower at 50 West 23rd Street in the Flatiron District. The building was 97 percent occupied as of October and has a debt service coverage ratio of 1.52 percent as of June, according to Fitch. A building with a ratio of less than 1 is considered to have negative cash flow.

In June, the building’s broker, Newmark Knight Frank, renewed the 64,000-square-foot lease for a magnet school, called the Manhattan Village Academy for lower rent, following more than a year of negotiations.

Moinian acquired the 333,000-square-foot building at 50 West 23rd from SL Green in 2003 for $66 million, or $198 a square foot.

Fitch noted that vacancies are up and average rents are down in the Midtown South submarket, according to a third-quarter office market report from CB Richard Ellis.

Sitt Asset Management’s office tower at 240 West 40th Street was 99 percent leased as of June. The lease for Donna Karan New York, which represents 92 percent of the building, expires in 2016.

A spokesperson for Moinian said the developer would not comment on the ratings action. Sitt Asset Management officials were not immediately available for comment.


Related Articles

arrow_forward_ios
The New York Life Sciences and Biotechnology Center at First Avenue and 41st Street (NY Life Sciences)
Life sciences leasing breaks annual record in five months
Life sciences leasing breaks annual record in five months
Manhattan sublease surge shows signs of slowing
Manhattan sublease scourge finally abates
Manhattan sublease scourge finally abates
Smaller retailers are snapping up Manhattan’s empty storefronts for shorter, cheaper leases (iStock)
Small retailers slip into city’s empty storefronts on the cheap
Small retailers slip into city’s empty storefronts on the cheap
Newmark CEO Barry Gosin and CBRE CEO Robert Sulentic with (from top) Chris Cowan, Shane Ozment and Terrance Hunt (Getty)
Newmark sues brokers who jumped to CBRE for violating non-compete
Newmark sues brokers who jumped to CBRE for violating non-compete
Paramount CEO Albert Behler and 60 Wall Street (Getty, Paramount Group)
Paramount Group plans $250M facelift for 60 Wall
Paramount Group plans $250M facelift for 60 Wall
Commercial real estate investment was harder-hit in the New York metro and Bay Area than in Greater Los Angeles. (iStock)
LA was top spot for commercial property investment in Covid-ravaged year
LA was top spot for commercial property investment in Covid-ravaged year
WATCH: How climate change puts real estate at risk
WATCH: How climate change puts real estate at risk
WATCH: How climate change puts real estate at risk
Barry Gosin (Getty, Newmark)
Newmark posts record Q1 revenue
Newmark posts record Q1 revenue
arrow_forward_ios

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

Loading...