Thor Equities in hot water at 545 Madison

Joe Sitt's firm has had difficulty covering its debt due to an increase in ground rent

New York /
May.May 24, 2019 09:07 AM
545 Madison Avenue and Thor Equities' Joe Sitt

545 Madison Avenue and Thor Equities’ Joe Sitt

UPDATED, May 27, 4:51 p.m.: When it rains, it pours for Joseph Sitt’s Thor Equities.

A $30 million CMBS loan from Barclay’s backed by Thor’s 545 Madison Avenue was sent to special servicing due to “severe cash flow issues,” Commercial Observer reported, citing data from Trepp.

Thor used the CMS loan to finance the purchase of the leasehold on the Madison Avenue office tower from BlackRock Realty and LCOR for $53 million in December 2013. But now, Thor has struggled to cover its debt because of to a $450,000 increase in ground rent on the property and stress on the property occupancy, according to servicer commentary.

A source close to the property told CO that Thor has no control over the building after the company sold a 98 percent interest to an unidentified high net-worth international investor.

The announcement comes on the heels of Sitt’s announcement to sell its retail condo at 680 Madison Avenue for an asking price of $370 million.

Last month, a special servicer took over Sitt’s $37 million mortgage on 115 Mercer Street in Soho, which Thor owns with Premier Equities. The neighborhood’s availability rate, at 25.3 percent, is the third highest in the city.

Meanwhile, Thor Equities notched two leases with Knotel at 590 Fifth Avenue and 597 Fifth Avenue, where the flexible-office-space provider will take 11,800 square feet and 6,400 square feet, respectively. [Commercial Observer] — Georgia Kromrei


Related Articles

arrow_forward_ios
Multifamily sector beating the odds

Multifamily sector beating the odds

Multifamily sector beating the odds
The home improvement retailer will stay in it's Flatiron location (Google Maps)

Home Depot extends lease for Flatiron store

Home Depot extends lease for Flatiron store
Hewlett Packard Enterprise Co. CEO Antonio Neri (Unsplash; Hewlett Packard Enterprise)

Hewlett Packard Enterprise leaves Silicon Valley for Texas

Hewlett Packard Enterprise leaves Silicon Valley for Texas
Convention centers are a losing proposition for private developers, but local governments see them as a way to attract business tourism. (iStock)

Convention centers boom despite shows going virtual

Convention centers boom despite shows going virtual
Charlie Kushner and Laurent Morali with Commons at White Marsh Apartments in Maryland (Photos via Sasha Maslov and CommonsatWhiteMarsh)

Kushner looks to unload multifamily properties for $800M

Kushner looks to unload multifamily properties for $800M
Having learned from missed opportunities a decade ago, family offices are strategically looking for distress opportunities in real estate (iStock)

Family offices are gearing up to pounce on distressed real estate

Family offices are gearing up to pounce on distressed real estate
Slate Property's CEO Martin Nussbaum (West End 87)

Scale Lending originates $38M inventory loan for unsold UWS condos

Scale Lending originates $38M inventory loan for unsold UWS condos
Knotel CEO Amol Sarva (Sasha Maslov, Knotel, iStock)

Evictions, unpaid vendors and back rent: Lawsuits mounting against Knotel

Evictions, unpaid vendors and back rent: Lawsuits mounting against Knotel
arrow_forward_ios

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

Loading...