Gluck gets extension for debt on troubled Independence Plaza

TRD New York /
Sep.September 26, 2011 10:10 AM

Laurence Gluck’s Stellar Management made a deal with special servicer CW Capital Asset Management to extend the $265 million senior mortgage on Independence Plaza in Tribeca by two years, the Wall Street Journal reported, giving it time to see how a rent-stabilization lawsuit plays out. It’s the second such deal Stellar has made with creditors on the 1,332-unit complex.

Stellar partnered with Westbrook Real Estate Partners to purchase the complex at 80 North Moore Street in 2003 with the intent to raise rents by removing it from the Mitchell Lama program. The firm initially took out just a $66 million mortgage, but used more debt to make building improvements. The owners have already earned more than twice their initial debt, but the earnings are in danger because of litigation over whether the apartments were legally destabilized.

Though a federal court ruled the destabilization was legal, a state court ruled otherwise. Both decisions are being appealed. If the destabilization is deemed illegal, Stellar would have to return some of its earnings, rents would be rolled back and the building’s value would be severely reduced.

In June, Stellar gave an ownership stake to Vornado in exchange for an extension on the $185 million junior debt. [WSJ]


Related Articles

arrow_forward_ios
Census tract 135 and Stellar Management's Larry Gluck (Credit: Getty Images and Stellar Management)

How a small stretch of land on the Far West Side became an Opportunity Zone

How a small stretch of land on the Far West Side became an Opportunity Zone
Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)

Free and clear: Vornado pays off debt at 220 CPS

Free and clear: Vornado pays off debt at 220 CPS
Vornado chairman and CEO Steven Roth, and 608 Fifth Avenue (Credit: Getty Images)

“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call

“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call
Clockwise from top left: Vornado's Steven Roth, Newmark Knight Frank's Barry Gosin, Redfin's Glenn Kelman, SL Green's Marc Holliday, Marriott's Arne Sorenson, Zillow's Richard Barton, Realogy's Ryan Schneider, and Cushman's Brett White

A real estate earnings call season for the ages

A real estate earnings call season for the ages
Steven Roth (Credit: Bruce Glikas/Getty Images, Vornado)

Vornado might never reopen century-old Hotel Pennsylvania, CEO says

Vornado might never reopen century-old Hotel Pennsylvania, CEO says
 Vornado CEO Steven Roth with 220 Central Park South (left) the Marriott Marquis at 1535 Broadway (Credit: Roth via Taylor Hill/FilmMagic; Vornado; StreetEasy)

Vornado sees “tragic abyss” now, better times ahead

Vornado sees “tragic abyss” now, better times ahead
Pandemic pay cuts: Analysis shows real estate CEOs aren’t giving up much

Pandemic pay cuts: Analysis shows real estate CEOs aren’t giving up much

Pandemic pay cuts: Analysis shows real estate CEOs aren’t giving up much
Vornado Realty Trust’s Steven Roth and 220 Central Park South (Credit: Roth by Bruce Glikas/FilmMagic; Jim.henderson via Wikipedia Commons)

Vornado inks another $52M closing at 220 Central Park South

Vornado inks another $52M closing at 220 Central Park South
arrow_forward_ios

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

Loading...