Thor in danger of losing Madison Ave property

Special servicer files for foreclosure after Joe Sitt’s firm defaults on $17M loan

New York /
May.May 29, 2019 03:56 PM
Thor Equities chairman Joe Sitt and 1006 Madison Avenue

Thor Equities chairman Joe Sitt and 1006 Madison Avenue (Credit: Google Maps)

In what seems like a regular occurrence these days, Thor Equities is having trouble with another one of its retail properties.

Joe Sitt’s firm is in default on the $17 million loan backing its retail property at 1006 Madison Avenue, and the loan’s special servicer has filed to foreclose on the asset, court records show.

It’s not exactly clear why Thor has fallen behind on payments. The property’s retail tenant, French womenswear designer Roland Mouret, shuttered its doors in December, Women’s Wear Daily reported. Roland Mouret’s lease runs through 2025, according to Trepp.

Thor stopped making payments on the interest-only loan in November, court filings claim. The loan’s special servicer, Miami-based Rialto Capital Advisors, sent Thor a notice of default in February and called the loan’s entire principal amount of $19.9 million due immediately.

Representatives for and Rialto did not respond to requests for comment. Thor declined to comment.

The loan, originated in 2015 by Natixis, carries an interest rate of 5.4 percent. Add to that a default interest rate of 5 percent, and the loan now costs Thor an annual rate of 10.4 percent, according to Rialto’s complaint.

The special servicer filed a summons in Manhattan Supreme Court Friday to foreclose on the property and asked a judge to appoint a receiver who will collect rent.

Thor purchased the property for an undisclosed amount in 2015.

The troubled loan at 1006 Madison is the just the latest in a string of recent setbacks Thor’s experienced on its retail properties.

Last week a $30 million CMBS loan backed by the company’s 545 Madison Avenue was sent to special servicing due to “severe cash flow issues.”

And last month a special servicer took over Thor’s $37 million mortgage on the Soho property at 115 Mercer Street the company owns with Premier Equities.

 

Related Articles

arrow_forward_ios
 Robert Morse, executive chairman of Bridge Investment Group, one of the major Opportunity Zone investors focusing on real estate.  (Bridge, Stanford)

Opportunity Zone investments got a boost in 2020

Opportunity Zone investments got a boost in 2020
333 Johnson Avenue with Royalton Capital’s Jin Lee, Sciame Construction's Frank Sciame and Normandy Real Estate Partners' Finn Wentworth (Royalton Capital, Sciame, Normandy)

Normandy sued by former partners for hiding Netflix deal

Normandy sued by former partners for hiding Netflix deal
Fabric co-founder, CEO Elram Goren (Getty, Elram Goren via LinkedIn)

Startup wants to bring “micro-warehouses” to vacant retail

Startup wants to bring “micro-warehouses” to vacant retail
Security around Trump Tower to be reduced after 45th POTUS leaves office. (Getty, The Trump Organization)

Fifth Avenue will look different after Trump leaves office

Fifth Avenue will look different after Trump leaves office
(Getty, iStock)

Booster shot: NYC real estate sees salvation in vaccine

Booster shot: NYC real estate sees salvation in vaccine
Before the pandemic, national tenants paid 94 percent of rent. (Getty)

Retail rent collections rebound to 90%

Retail rent collections rebound to 90%
Cindat Capital Management CEO Greg Peng and Hersha Hospitality Trust CEO Jay Shah with 51 Nassau Street (Google Maps)

7 Manhattan hotels head to auction block

7 Manhattan hotels head to auction block
As companies leave Silicon Valley, Austin, Texas is becoming a top destination. (Getty)

Silicon Valley exodus: Where’d everyone go?

Silicon Valley exodus: Where’d everyone go?
arrow_forward_ios

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

Loading...