SL Green buys $250M debt on Sitt Asset’s
2 Herald Square

Sitt brothers recently put the leasehold up for sale

May.May 15, 2017 04:20 PM

From left: Eddie Sitt, Marc Holliday and 2 Herald Square (Credit: Cushman & Wakefield)

UPDATED, May 15, 6:05 p.m.: SL Green Realty bought $250M in CMBS debt on Sitt Asset Management’s 2 Herald Square.

The loan went into special servicing in March and matured in April. Attorney Stephen Meister, who represents Ralph and David Sitt, told the Commercial Observer that “Ralph enjoys an excellent relationship with SL Green and looks forward to resolving the matter.”

Wells Fargo originated the 10-year loan, which is now serviced by CWCapital. The
Real Deal recently reported that the loan’s term was extended by six months to allow the Sitts time to refinance.

The Sitt brothers bought the leasehold on the 11-story, 354,000-square-foot property for $270 million in 2007. Eddie and Jack Sitt later fell out with Raph and David, and the two sides have been fighting for control of the property since. The four brothers and their mother jointly own a 51.75 percent interest in the leasehold.

The building is losing around $1.7 million per month, but recently landed co-working company WeWork as a tenant. In late April Sitt Asset Management put the leasehold up for sale.  [CO]Konrad Putzier

Note: this post has been updated after CO’s original article was changed.

Related Articles

With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

The Daily News Building at 220 East 42nd Street and SL Green CEO Marc Holliday (Credit: Getty Images)

SL Green puts Daily News building up for sale

315 West 33rd Street, SL Green's Marc Holliday and Brookfield's Ric Clark (Credit: SL Green, Getty Images)

Brookfield fund buying 315 West 33rd Street from SL Green for $447M

Greystar CEO Bob Faith and the Parkside Place Apartments in Cary, North Carolina (Credit: Greystar and Apartments)

What Greystar’s belief in multifamily says about the health of the economy

Brookfield Asset Management CEO Bruce Flatt

“We underwrite every investment like we’re going to hit a recession”: Brookfield CEO

Rupert Murdoch and David Doctorow (Credit: Getty Images, iStock)

News Corp. looks to Opcity lead-generation to boost real estate services biz

Clockwise from the bottom left: The Eugene (435 West 31st Street), the Hudson Yards observation deck condominium and 555 Tenth Avenue (Credit: Google Maps)

West Side story: Manhattan’s largest January real estate loans