Kushner Companies’ Times Square retail condo headed to auction

Mezz lender pushing for sale of 250K-sf property at 229 West 43rd Street

TRD New York /
Jun.June 25, 2020 10:25 AM
229 West 43rd Street and Charlie Kushner (Google Maps, Getty)

229 West 43rd Street and Charlie Kushner (Google Maps, Getty)

Kushner Companies’ struggling Midtown retail condo is set to go to a Uniform Commercial Code foreclosure auction.

The 251,000-square-foot property at 229 West 43rd Street will come up for sale on June 30, according to Commercial Observer, which cited an auction notice from JLL.

The auction is being sought by mezzanine lender Paramount Group, which issued a $70 million loan for the project in 2016. This March, it was reported that Kushner Companies had fallen behind on loan payments for the fourth time in five months — and the pandemic has only intensified pressure on the retail sector since then.

Kushner Companies did not respond to a request for comment.

The firm purchased the property in 2015 for $296 million, and later secured $370 million in refinancing.

The deal included Paramount’s $70 million mezzanine loan, as well as a $15 million mezzanine loan from SL Green and a $285 million CMBS loan from Deutsche Bank.

Last November, the $285 million loan was moved to special servicing in order to be reworked after tenants defaulted on their leases. Miniature landscape emporium Gulliver’s Gate had gone bankrupt.

The auction later this month will reportedly take place over Zoom, and participants will be required to enter a password for entry.

[CO] — Sylvia Varnham O’Regan


Related Articles

arrow_forward_ios
Bloomingdales at 2085 Broadway (Google Maps, iStock)

Bloomingdale’s sued for $2.5 million in missed rent

Bloomingdale’s sued for $2.5 million in missed rent
Brookfield’s Ric Clark and Simon Property Group’s David Simon (Getty)

Simon, Brookfield in talks to buy bankrupt J.C. Penney

Simon, Brookfield in talks to buy bankrupt J.C. Penney
Neiman Marcus at Hudson Yards (Getty)

Neiman Marcus committed to 50 years at Hudson Yards. It lasted 16 months.

Neiman Marcus committed to 50 years at Hudson Yards. It lasted 16 months.
Thomas Keller with Bouchon Bakery and TAK Room in Hudson Yards (Taylor Hill/FilmMagic, Bouchon Bakery by David Escalante via Thomas Keller Restaurant Group; TAK Room by John Lamparski/Getty Images for The Conservatory NYC)

Thomas Keller closing TAK Room, Bouchon Bakery at Hudson Yards

Thomas Keller closing TAK Room, Bouchon Bakery at Hudson Yards
A Stein Mart location (Getty, iStock)

Discount retailer Stein Mart files for bankruptcy, plans to close most stores

Discount retailer Stein Mart files for bankruptcy, plans to close most stores
Nat Sherman Townhouse and Altria Group CEO Billy Gifford (Google Maps, Altria)

Tobacco shop Nat Sherman to close after 90 years

Tobacco shop Nat Sherman to close after 90 years
Rendering of the project (Courtesy of 125thstreet.nyc)

$242M Harlem mixed-use project will include civil rights museum

$242M Harlem mixed-use project will include civil rights museum
Authentic Brands Group CEO Jamie Salter, David Simon and Brooks Brothers (Getty)

Simon, Authentic Brands to buy Brooks Brothers

Simon, Authentic Brands to buy Brooks Brothers
arrow_forward_ios

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

Loading...