$140M loan on Sitt and Moinian’s 245 Fifth sent to special servicer

New York /
Apr.April 12, 2012 04:00 PM

A $140 million loan on developers Joseph Sitt and Joseph Moinian’s 245 Fifth Avenue has been transferred into special servicing because of default concerns, according to data provided to The Real Deal by analytics firm Trepp.

While the developers are still current on their loan, a default may be imminent, the data indicates. The transfer happened March 5, according to Trepp’s records.

Moinian and Sitt are the sole owners of the property following Moinian’s purchase of the tower with a fund from Goldman Sachs for $190 million in 2007 and Sitt later injected funds as part of a recapitalization of the property. The pair declined to comment on the transfer of the loan to special servicing, but confirmed that it was having some success shopping for capital as the loan nears its expiration date in May.

“We comment on acquisitions in closing process but not refinancing,” Sitt said.

Moinian bought the 307,418-square-foot office building at the height of the market pre-crash but rents at the building never performed to the heights initial investors thought it would, according to previous news reports.

The owners retained Douglas Harmon and Adam Spies of Eastdil Secured to help them source a cash infusion in the property. The brokers were not immediately available for comment.

While a nearing default is rarely a positive thing, sources said that letting the loan be transferred to a special servicer could be a strategic move.

“Sometimes it can be a good thing [for the loan to go into special servicing],” said real estate attorney Kevin O’Shea of Allen & Overy, who was not involved in the project, “because the servicer is charged with making complex decisions about the loan and entertaining modification requests. If that’s one of the [developers’] strategies — to get an extension or forbearance while trying to raise capital — it can be a good thing.”


Related Articles

arrow_forward_ios
Illustration of Joseph Sitt (Illustration by The Real Deal; Getty; Thor)
Thor launches $3B “underdog” Brooklyn casino bid
Thor launches $3B “underdog” Brooklyn casino bid
Starwood's Barry Sternlicht and Thor Equities’ Joe Sitt with 470 Broadway (Getty, Thor Equities)
Thor unloads troubled 470 Broadway to Sternlicht’s LNR
Thor unloads troubled 470 Broadway to Sternlicht’s LNR
Thor Equities' Joseph Sitt (Joseph Sitt, Getty)
Thor completes hat trick of NJ industrial acquisitions
Thor completes hat trick of NJ industrial acquisitions
Thor Equities’ Joe Sitt with 60 East 66th Street (Thor Equities Group, Leslie J. Garfield & Co)
Thor Equities still trying to sell Lenox Hill townhouse after 10 years
Thor Equities still trying to sell Lenox Hill townhouse after 10 years
From left: Bert H. Dweck and Joe Sitt with 790 Madison Avenue (
Joe Sitt, Bert Dweck settle Madison Ave dispute with fashion house
Joe Sitt, Bert Dweck settle Madison Ave dispute with fashion house
790 Madison Avenue, Thor Equities CEO Joe Sitt and Bert Dweck (Google Maps, Thor and Premier Equities)
Fashion house: After 2 years and 2 lawsuits, Sitt and Dweck still haven’t paid
Fashion house: After 2 years and 2 lawsuits, Sitt and Dweck still haven’t paid
Thor Equities' Joe Sitt and the retail condo at the base of 700 8th Avenue (Thor Equities, Google Maps)
Joe Sitt loses West Side retail space to foreclosure
Joe Sitt loses West Side retail space to foreclosure
Clockwise: 138 Bruckner Boulevard in the Bronx, 305 East 61st Street, 161 Lexington Avenue and 539 West 54th Street (Google Maps)
Dozen deals spell big week for Manhattan investment sales
Dozen deals spell big week for Manhattan investment sales
arrow_forward_ios

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

Loading...