Atlas to buy $102M LIC building out of bankruptcy

TRD New York /
Oct.October 11, 2013 03:25 PM

Midtown-based real estate investment firm Atlas Capital Group is expected to purchase a 1 million square foot commercial building in Long Island City valued at more than $102 million from property investor Mark Karasick, federal bankruptcy records show.

Atlas Capital, headed by Jeffrey Goldberger and Andrew Cohen, is the mezzanine lender on the property at 47-44 31st Street. To acquire the building through a deed-in-lieu process, it will pay $5 million to the Karasick ownership entities and pay off the entire $77 million first mortgage, according to records filed yesterday with the U.S. Bankruptcy Court in Manhattan.

This is at least the second Atlas purchase in Long Island City in the past two years. In December 2012 it paid $13.5 million for 24-02 Queens Plaza South.

Atlas and Karasick did not return requests for comment.

The 31st Street structure built in 1920 covers the entire city block from 47th to 48th Avenues And 31st Street And 30th Place. It is next door to the Falchi Building at 31-00 47th Avenue, which Jamestown Properties bought for $81.2 million in May 2012, and plans to create a Chelsea Market-style retail experience.

The Karasick entities purchased the leasehold in 2000 and the fee interest in the building in 2006, city records show. In 2006, the owners took out $77 million as a first mortgage loan from the Canadian Imperial Bank of Commerce, as well as an additional $28.3 million in mezzanine loans from Petra Mortgage Capital. Petra transferred its interest in those loans June 27, 2012, the records show, to Atlas. The first mortgage is now part of a commercial mortgage backed security managed by C-III Asset Management.

At some point, the $77 million loan matured, but the owners could not refinance it, and fell into default, which led to the voluntary bankruptcy filed yesterday and the planned sale. In addition, Karasick owed Atlas more than $26.6 million in a deficiency claim.


Related Articles

arrow_forward_ios
Nearly 60% of condo units built in Long Island City, Queens, since 2018 remain unsold. (iStock)

“You’ve either made the wrong shoes, or you’ve made too many”: LIC faces a serious condo glut

“You’ve either made the wrong shoes, or you’ve made too many”: LIC faces a serious condo glut
Square Mile Capital’s Craig Solomon and Hackman Capital Partner's Michael Hackman with Silvercup Studios at 42-22 22nd Street in Long Island City (Hackman; AAK via Wikipedia Commons)

Hackman, Square Mile in talks to buy Silvercup Studios

Hackman, Square Mile in talks to buy Silvercup Studios
48-49 35th Street in Long Island City and North River Company's Forrest Mas (Google Maps, North River Company)

Maquette doubles space at Matsil Building in Long Island City

Maquette doubles space at Matsil Building in Long Island City
A rendering of the site at 44-02 Vernon Boulevard in Long Island City and Douglas Durst

Owners of LIC’s “Lake Vernon” notch win in tug-of-war with Durst

Owners of LIC’s “Lake Vernon” notch win in tug-of-war with Durst
Clockwise from top left: 190 Beach 69th Street, 47-20 Center Boulevard and 2505 Bruckner Boulevard

These were the top outer borough loans last month

These were the top outer borough loans last month
From left: Eagle Lofts at 43-22 Queens Street in Long Island City, 292 North 8th Street in Williamsburg and The Landing at 15 Bridge Park Drive in Brooklyn Heights (Credit: Rockrose Development, Stonehill & Taylor Architects and StreetEasy)

Rockrose’s $350M haul tops March list of outer-borough loans

Rockrose’s $350M haul tops March list of outer-borough loans
38-42 12th Street (Credit: Google Maps)

Joint venture plans 400K sf commercial project for LIC

Joint venture plans 400K sf commercial project for LIC
The Real Deal interviews TF Cornerstone's Tom Elghanayan at REBNY's 124th annual banquet.

TF Cornerstone exec: How I got over Amazon dumping LIC

TF Cornerstone exec: How I got over Amazon dumping LIC
arrow_forward_ios

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

Loading...