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Senior debt on Swig’s 80 Broad up for grabs
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.” The prewar office property, for which Swig paid $70 million in 2004, was appraised for $67 million in April. Swig also defaulted on a $12 million mezzanine loan there last year. 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. Swig’s spokesperson countered that “the purchase and sale of debt in today’s market is commonplace and the motivation of one party to sell its position is often a business decision not necessarily related to the performance of a specific property.” Cushman & Wakefield’s Steven Kohn, Helen Hwang, Nat Rockett, Karen Wiedenmann and Alex Hernandez are marketing the loan. [Post]