Thor in danger of losing Madison Ave property

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

TRD 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.

 

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