SL Green nabs $150M loan for 2 Herald Square

MUFG Union Bank provided the mortgage

New York /
Nov.November 16, 2018 05:00 PM

SL Green’s Marc Holliday and 2 Herald Square (Credit: SL Green and Property Shark)

SL Green Realty has landed a $150 million loan for 2 Herald Square, which the firm acquired the leasehold of through a foreclosure auction.

MUFG Union Bank, which previously provided a $25 million gap mortgage on the 369,000-square-foot property, provided the real estate investment trust with the new financing.

It is unclear how the new loan will be used. SL Green did not immediately respond to a request for comment.

SL Green had bought the property’s $250 million first mortgage in May 2017. Eventually, the company moved to foreclose and acquired the leasehold for roughly $270 million in May 2018.

The building had long been the crown jewel of the Sitt family’s Sitt Asset Management, which paid $275 million for the leasehold in 2007. The four Sitt brothers — Jack, Ralph, Eddie and David — eventually descended into a legal battle. Ralph was targeted by separate lawsuits filed by Jack and Eddie in 2014 and 2015, alleging that he had forged documents to take control of 2 Herald Square, while freezing Jack out of Sitt Asset Management, and using funds from the family company to finance his own firm, Status Capital. Eddie settled the suit with his brothers in January.

The property faced financial troubles during the litigation, and other investors were interested in taking control of the building. That included JEMB Realty, preferred-equity investor Paramount Group and Jamestown, which sought an outright purchase.

The building, which is anchored by Victoria’s Secret and also contains WeWork and Mercy College, has previously been owned by Harry Helmsley and Aby Rosen. The WeWork space is largely occupied by Amazon, which just announced it would bring half of its second headquarters to Long Island City.

Elsewhere, SL Green went into contract last month to sell its fee interest in 1231 Third Avenue and 31,000 square feet of development rights, as well as an assemblage at 252-254, 257, 259 and 260 East 72nd Street for a total of $144 million.


Related Articles

arrow_forward_ios
Wendy Silverstein (Credit: Getty Images)
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
WeWork CEO Adam Neumann (Credit: Getty Images and iStock)
WeWork’s side businesses are fizzling
WeWork’s side businesses are fizzling
Sarah Pontius (Credit: Union College)
Another head rolls at WeWork
Another head rolls at WeWork
WeWork CEO Sandeep Mathrani (Getty Images, WeWork)
WeWork stock has taken a WeDive. Will it resurface?
WeWork stock has taken a WeDive. Will it resurface?
SL Green chairman Marc Holliday and One Madison Avenue (Getty Images, SL Green Realty Corp)
Franklin Templeton takes 347K sf at SL Green’s One Madison Avenue
Franklin Templeton takes 347K sf at SL Green’s One Madison Avenue
Joel Schreiber, Starwood's Barry Sternlicht and 801 South Broadway (MDM Builders Group, Getty)
Starwood sues Joel Schreiber for $272M over troubled LA building
Starwood sues Joel Schreiber for $272M over troubled LA building
From left: Arch Companies' Jeff Simpson and Hello Living's Eli Karp along with a rendering of 1580 Nostrand Avenue (Getty Images, Arch Companies, Hello Living)
Eli Karp’s Hello Living says goodbye to Flatbush project
Eli Karp’s Hello Living says goodbye to Flatbush project
The Row hotel at 700 eighth avenue (Booking, Getty)
Foreclosure looms at struggling Row Hotel
Foreclosure looms at struggling Row Hotel
arrow_forward_ios

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

Loading...