Gluck gets extension for debt on troubled Independence Plaza

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
Blackstone's Jonathan Gray, Fortress Investment's Peter Briger, Harry Macklowe and Donald Trump (Blackstone, Long Arc Capital, Getty Images)
The Fortress real estate hall of fame
The Fortress real estate hall of fame
The Chetrit Group's Joseph Chetrit and Park West Village on the Upper West Side (Getty Images, Google Maps)
Chetrit, Stellar land $365M refi for UWS luxury apartment complex
Chetrit, Stellar land $365M refi for UWS luxury apartment complex
Vornado ceo Steven Roth and One Penn Plaza (Illustration by Kevin Cifuentes for The Real Deal with Getty Images, Vornado Realty Trust)
Vornado’s Roth sees “choppy” market, chides Penn skeptics
Vornado’s Roth sees “choppy” market, chides Penn skeptics
Edmonton Oilers' Daryl Katz with 220 Central Park South
Oilers owner buys $36M pad at Vornado’s 220 CPS
Oilers owner buys $36M pad at Vornado’s 220 CPS
Vornado’s Steven Roth and Governor Kathy Hochul with Penn 15 and Penn Station (Getty, DBOX, MTA)
Penn Station vote clears way for deals with developers
Penn Station vote clears way for deals with developers
arrow_forward_ios

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

Loading...