SL Green, Chetrit settle lawsuit over Daily News building

$815M deal for Midtown East skyscraper fell apart in March

New York /
Sep.September 24, 2020 03:00 PM
220 East 42nd Street and SL Green CEO Marc Holliday (SL Green)

220 East 42nd Street and SL Green CEO Marc Holliday (SL Green)

SL Green Realty and Jacob Chetrit have resolved their dispute over the busted deal for the Daily News Building, one of the biggest property deals to disintegrate as the coronavirus pandemic froze the debt markets.

The real estate investment trust, one of New York City’s largest commercial landlords, dropped the lawsuit it filed in May to recover a $35 million deposit from escrow after Chetrit objected to its release, court records show.

A spokesperson for SL Green declined to comment. Chetrit did not immediately respond to a request for comment.

SL Green’s decision to dismiss the case lays to rest what had been one of the largest New York City real estate deals to combust in the early days of the pandemic.

Chetrit agreed to buy the 1.1 million-square-foot building at 220 East 42nd Street last September for $814 million.

But SL Green claimed in court papers that Chetrit couldn’t find financing for the purchase once the pandemic hit, and couldn’t finalize the deal on its closing date in late March.

SL Green decided to hold onto the property and refinanced this summer with a $510 million mortgage from Aareal Capital Corp., Citi and Credit Agricole. The property was depicted in the 1978 “Superman” movie as the Daily Planet headquarters. SL Green bought it in 2003 for $265 million.





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