The Real Deal New York

Thor gives up ownership of UES building

SL Green will take control of mixed-use property at 1231 Third Avenue
July 20, 2018 05:00PM

A rendering of 1231 Third Avenue and CEO Joe Sitt of Thor Equities (Credit: Thor Equities)

Thor Equities has relinquished its ownership of 1231 Third Avenue, giving control of the building to SL Green Realty.

The real estate investment trust had held a mezzanine loan against the building, although it was unclear how large this loan was and how long Thor had been in default on it, sources told Crain’s. SL Green also holds debt against Thor’s retail buildings at 597 and 590 Fifth Avenue.

Thor had purchased the building at the corner of East 71st Street in 2013 for $52.5 million and made upgrades including putting in a roof deck and renovating the retail. The property stands four stories tall and spans 41,279 square feet with 34 apartments and about 15,000 square feet of retail space.

The company leased some of the retail space to Sprint and New York Sports Club, but much of it stayed vacant. Thor had been marketing the building for about two years at least.

Thor and partner Premier Equities filed plans earlier this year for a new residential building nearby at 1299 Third Avenue that would stand six stories tall with three residential units.  [Crain’s] – Eddie Small