An entity affiliated with California-based investment firm CIM Group purchased the former Drake Hotel site at Park Avenue and 56th Street for $305 million from Macklowe Properties.
The Wall Street Journal reported earlier this month that CIM Group and Macklowe Properties were in discussions to buy back the debt at a discount.
Macklowe Properties bought the original site for $418 million, and loaded it up with loans valued at $543 million, city property records show.
The property transfer does not indicate whether Macklowe Properties is a partner in the new ownership entity, CIM/56th Street LLC.
The sale ends a complex battle for the loans on the property. German lender Deutsche Bank filed to foreclose on $482 million in loans in August 2008. Then lender iStar Financial tried to sell a $224 million first position debt for $160 million, but could not find a buyer last year.
A spokesperson for Macklowe Properties said the company declined to comment.