Thor Equities takes another retail bodyblow

A special servicer has taken over the mortgage at 115 Mercer Street

New York /
Apr.April 08, 2019 08:45 AM
Thor Equities CEO Joseph Sitt and 115 Mercer Street 

Thor Equities CEO Joseph Sitt and 115 Mercer Street

Joseph Sitt’s real estate troubles have come to a head at 115 Mercer Street.

Sitt’s Thor Equities has defaulted on loan payments for the Soho building, and a special servicer has taken over the firm’s $37 million mortgage on the building, according to the Wall Street Journal. The firm has also been negotiating with the Kooples, a fashion retailer, on a new lease for the property. Kooples said last year that it was expecting much higher income at the store and threatened to leave with six years left on the lease unless Thor renegotiated the terms.

Sitt purchased the site in 2013 for $16.4 million.

A mortgage at one of Sitt’s properties on the Upper East Side has also been in special servicing since 2018.

The struggles show how choppy the Manhattan retail market has become in recent years, with asking rents falling in 10 out of the borough’s 12 major retail neighborhoods between the first quarter of last year and the first quarter of this year, according to the Journal, citing data from Cushman & Wakefield. The Upper East Side has faced particularly severe struggles, with asking rents between East 57th and East 72nd Streets dropping by 28.7 percent and its availability rate hitting 28.2 percent.

In Soho, the neighborhood for Sitt’s 115 Mercer Street, the availability rate is 25.3 percent, third highest in the city. In 2017, an analysis by The Real Deal found that retail sat vacant in about $1 billion worth of newly bought Soho real estate.

Thor still owns about $5 billion worth of Manhattan real estate, but the firm has sold off several properties recently. These include a commercial condo at 51 Greene Street, which it sold to Acadia Realty Trust for about $14.6 million, and a trio of retail condos at 212 Fifth Avenue, which it sold to an international investor for more than $25 million.

It also abandoned plans for an office-and-retail megaproject in Red Hook, and instead will plan a last-mile industrial play[WSJ] – Eddie Small


Related Articles

arrow_forward_ios
Cannabis shop, marijuana growing facilities
Cannabis entrepreneurs pay premiums for real estate
Cannabis entrepreneurs pay premiums for real estate
Amazon's Andy Jassy with Amazon Fresh store front (Illustration by The Real Deal with Getty, Google maps)
Amazon scraps plans for big-box store
Amazon scraps plans for big-box store
From left: Adam Weiner and John Fish (Getty, LinkedIn, Curry)
Developer destroyed potential evidence in battle over $800M project
Developer destroyed potential evidence in battle over $800M project
Fromk left: Mauricio Umansky, Christian Ulbrich, and Scott Rechler
They said what now? Real estate quotes of the week
They said what now? Real estate quotes of the week
RXR's Scott Rechler, Tamir Shemesh, Richard Meruelo, and Maria Meruelo (Getty, Serhant, Coldwell Banker)
Breakups, layoffs and walkaways: No love in real estate last week
Breakups, layoffs and walkaways: No love in real estate last week
From left: Standard International's Amar Lalvani and SIXTY Collective's Jason Pomeranc along with the SIXTY Soho Hotel (Getty, Facebook/SIXTY Soho)
Standard buys Sixty Soho hotel for apparent post-Covid record price
Standard buys Sixty Soho hotel for apparent post-Covid record price
Multifamily player Tides Equities faces $6.5B dilemma in the Sun Belt
Multifamily player Tides Equities faces $6.5B dilemma in the Sun Belt
Multifamily player Tides Equities faces $6.5B dilemma in the Sun Belt
Governor Kathy Hochul, casino chips, film camera
How Hochul’s film tax credit, casino plan affect real estate
How Hochul’s film tax credit, casino plan affect real estate
arrow_forward_ios

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

Loading...