The Real Deal New York

Gluck strikes deal to recapitalize Independence Plaza

June 24, 2011 01:21PM

Larry Gluck has struck a deal with Vornado Realty Trust to Recapitalize His Troubled Independence Plaza North apartment complex at 80 North Moore Street in Tribeca, sources told the Wall Street Journal. Vornado purchased $185 million in junior debt on the 1,300-unit property for $185 million, those sources said.

Gluck’s Stellar Management originally picked up the property in 2003, taking out $575 million in loans to renovate the apartments and convert them from middle-income housing to luxury rentals. Ultimately, the revenue from those rentals didn’t meet Gluck’s expectations, and earlier this year, the loan entered special servicing. There’s still some $400 million in debt that is maturing this fall.

“Stellar Management continues to engage in an amicable dialogue with various lenders to extend the overall debt on the property,” said a spokesperson for the company.

Meanwhile, Gluck is facing off in court against a group of tenants who allege that he illegally deregulated their apartments because he had been simultaneously accepting J-51 tax breaks for upgrades at the building. [WSJ]

One Response to “Gluck strikes deal to recapitalize Independence Plaza”

  1. June 12, 2018 at 8:30 pm, Vornado, Stellar land $675M refi for Independence Plaza | Juspost NewsHub said:

    […] to turn the property into luxury rentals. By early 2011, the debt had fallen out of balance, and Vornado recapitalized the tower. The real estate investment trust now owns 50.1 percent of the […]