$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
The Scribner Building at at 597 Fifth Avenue and Joe Sitt of Thor Equities (Wikipedia Commons)
Thor delinquent on $105M loan at 597 Fifth
Thor delinquent on $105M loan at 597 Fifth
Stefano Ricci, Joe Sitt and 118-120 Northeast 39th Street (Getty, Thor, Google Maps)
Thor Equities sues to evict Stefano Ricci from Miami Design District
Thor Equities sues to evict Stefano Ricci from Miami Design District
Michael Shvo, Thor Equities’ Joe Sitt, Wharton Properties’ Jeff Sutton and 530 Broadway
Michael Shvo closes on Soho retail building for $382M
Michael Shvo closes on Soho retail building for $382M
494 Broadway and Thor Equities' Joe Sitt (Credit: Google Maps)
Thor faces foreclosure on site where lender says it’s seeking “unrealistic rents”
Thor faces foreclosure on site where lender says it’s seeking “unrealistic rents”
From left: Daniel Chetrit, Max Moinian and Joseph Moinian (Photos by Anuja Shakya)
See who made it to Moinian’s holiday bash
See who made it to Moinian’s holiday bash
Thor Equities' Joe Sitt and 725 8th Avenue (Credit: Google Maps)
Thor facing foreclosure at Theater District building
Thor facing foreclosure at Theater District building
Joe Sitt and 1725 Shore Parkway in Bensonhurst (Credit: Google Maps)
Thor sells Bensonhurst big-box store for $75M
Thor sells Bensonhurst big-box store for $75M
Thor Equities chairman Joe Sitt and 1006 Madison Avenue
Thor in danger of losing Madison Ave property
Thor in danger of losing Madison Ave property
arrow_forward_ios

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

Loading...