Joe Sitt has officially left the building.
545 Madison Avenue (Credit: Google Maps)
Sitt’s Thor Equities was evicted from its ground lease at 545 Madison Avenue earlier this week, Crain’s reported. Marx Realty, owner of the land underneath the building, is now assuming control of the 140,000- square-foot building and planning to conduct a $10 million renovation.
Marx president and CEO Craig Deitelzweig said he expects the office and retail space to be full leased by 2021. Marx has been trying to evict Thor since July over $554,583 in unpaid rent and $1.6 million in outstanding real estate taxes.
Marx CEO Craig Deitelzweig (Credit: Any Size Deals)
Trouble began earlier this year after Thor’s ground rent rose by $450,000. The firm struggled to cover its payments on a $30 million CMBS loan from Barclays on the property and it was sent to special servicing for “severe cash flow issues.”
Thor’s eviction wipes out the Barclays loan and a mezzanine loan of about $5 million from Waterman Interests.
Marx told Crain’s the situation put “a real strain on the building.”
“Given the situation, they weren’t doing anything to enhance the building. We’ve met with all the tenants and let them know we’re going to do the right thing for the property,” he continued. [Crain’s] — Erin Hudson