Atlas to buy $102M LIC building out of bankruptcy

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
Developers break ground on 500-unit LIC project with $220M loan
Developers break ground on 500-unit LIC project with $220M loan
Developers break ground on 500-unit LIC project with $220M loan
Longfellow inks first NYC purchase with stake in LIC life sciences property
Longfellow inks first NYC purchase with stake in LIC life sciences property
Longfellow inks first NYC purchase with stake in LIC life sciences property
City’s tallest warehouse could be coming to Queens
City’s tallest warehouse could be coming to Queens
City’s tallest warehouse could be coming to Queens
Carlyle's Kewsong Lee and Jason Hart with 22-22 Jackson Avenue (Carlyle Group, ODA Architecture)
For $85M, Carlyle nabs another LIC resi building
For $85M, Carlyle nabs another LIC resi building
Residents at Sven in Long Island City will be able to control the light show atop their building, as well as some in Manhattan. (Spireworks)
LIC tower giving residents chance to light up night
LIC tower giving residents chance to light up night
Amazon eyeing 400K sf office in Jersey City
Amazon eyeing 400K sf office in Jersey City
Amazon eyeing 400K sf office in Jersey City
Clay Grubb (Glen Lennox, Getty)
Grubb Properties tests affordable housing model in NYC
Grubb Properties tests affordable housing model in NYC
Pink Stone sells languishing FiDi site for $89M
Pink Stone sells languishing FiDi site for $89M
Pink Stone sells languishing FiDi site for $89M
arrow_forward_ios

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

Loading...