Lender forecloses on Maefield’s billion-dollar Times Square project

Natixis claims Maefield is in default on $650M loan at 20 Times Square

New York /
Dec.December 09, 2019 02:05 PM
Maefield Development's Mark Siffin and 20 Times Square (Credit: Maefield)

Maefield Development’s Mark Siffin and 20 Times Square (Credit: Maefield)

The massive LED sign that wraps around Seventh Avenue and West 47th Street — it’s roughly the size of four basketball courts — exists today thanks to a Times Square-sized construction loan.

The $2 billion financing package that Natixis led for Maefield Development’s project at 20 Times Square was the largest real estate loan of 2018. But a portion of that debt package is now in default, according to Natixis, which has filed to foreclose on Maefield’s project.

The French bank on Monday filed a lawsuit in Manhattan State Supreme Court alleging a $650 million portion of the loan package is in default because of “numerous undischarged mechanics’ liens recorded against the property.” The property is also known as 701 Seventh Avenue.

Natixis argues that Maefield blew past several deadlines to complete the project clear of any liens and sent a final notice of deficiency in September.

Representatives for Maefield and Natixis could not be immediately reached for comment.

Natixis also claims that Maefield defaulted by failing to lease the project’s retail space by a September deadline. The NFL Experience, a joint venture between the National Football League and Cirque du Soleil, had occupied 40,000 square feet in the tower for roughly a year before leaving at the end of 2018.

Maefield, led by Mark Siffin, teamed up with Steven Witfkoff, Winthrop Realty Trust, the Carlton Group and Howard Lorber’s New Valley to purchase the leasehold on the property in 2012 for $430 million.

They set out plans to develop a 452-key Marriott Hotel with four floors of retail and a giant 17,000-square-foot LED sign.

Siffin used part of the $2 billion finance package to buy out his partners and fund construction of the project.

Correction: An earlier version of this article misstated 20 Times Square’s previous tenant. It was the NFL.


Related Articles

arrow_forward_ios
Parkview’s Paul Rahimian and 1800 Avenue at Port Imperial (Parkview Financial, Handel Architects, Illustration by Kevin Cifuentes for The Real Deal)
Chinese developer Hongkun faces foreclosure on luxury NJ condo
Chinese developer Hongkun faces foreclosure on luxury NJ condo
Joseph Chetrit and 98 Montague Street in Downtown Brooklyn (Credit: Getty Images and Google Maps)
Brooklyn’s iconic Bossert Hotel facing foreclosure
Brooklyn’s iconic Bossert Hotel facing foreclosure
Related's Stephen Ross, the Gregory Hotel at 42 West 35th Street and Meadow Partners’ Jeffrey Kaplan (Getty, Google Maps, Meadow Partners)
Related sues Meadow after foreclosure on Garment District hotel
Related sues Meadow after foreclosure on Garment District hotel
Extell Development's Gary Barnett. Bluestone Group's Eli Tabak and 605 West 45th Street (Google Maps. LinkedIn, Extell Development)
Gary Barnett hunts lucrative Hell’s Kitchen assemblage
Gary Barnett hunts lucrative Hell’s Kitchen assemblage
Retail landlord Jack Terzi and 240 East 54th Street (Jack Terzi)
Terzi owes $58M and counting on Midtown SoulCycle building: suit
Terzi owes $58M and counting on Midtown SoulCycle building: suit
Robert Gans, 533 West 27th Street and Eli Tabak (Robert's Steakhouse, Google Maps)
Strip club owner alleges Tabak family conspiracy in $100M suit
Strip club owner alleges Tabak family conspiracy in $100M suit
A photo illustration of "Foreclosure" signs (iStock)
Foreclosures surge 181% to highest levels since March 2020
Foreclosures surge 181% to highest levels since March 2020
Spiros and Antonia Milonas with the Briarcliff (Getty, Zillow)
Morgan Stanley wades into Milonas condo feud
Morgan Stanley wades into Milonas condo feud
arrow_forward_ios

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

Loading...