Alexico looks to Goldman to rescue the Mark

August 26, 2010 09:30AM

The Mark Hotel

The Alexico Group has reached out to Goldman Sachs for financing to buy back its mortgage debt on its Upper East Side co-op conversion at the Mark Hotel in an effort to pull the struggling property back above water, according to the Wall Street Journal. Alexico, which owes Anglo Irish Bank roughly $270 million, entered talks with Dune Real Estate Partners earlier this year about how it might restructure the loan, and the partnership is now negotiating with Goldman. Sales have been slow at the 83-year-old property at 25 East 77th Street, where prices range from $2 million to $60 million but just two units have sold thus far for a total of $15.7 million. Alexico’s original plan was to convert 42 of the hotel’s 160 units to luxury co-ops, through which it hoped to raise $308 million. The developer later scaled back the conversion to just 10 units, which were supposed to raise a combined $167 million, due to a lack of interest. Sources said Anglo Irish would be willing to accept an offer below $200 million to purge the debt from its portfolio. The lender also sold around $230 million in loans on Alexico’s Alex Hotel and Flatotel this year for roughly $180 million. [WSJ]