$78.6M sub-performing loan on Union Crossing up for sale

Distress alert: A $78.6 million sub-performing loan on 825 East 141st Street is for sale.

The loan on the South Bronx warehouse-to-office conversion known as Union Crossing was originated by Greg Lippmann’s LibreMax in January 2020 for the owners to continue renovating and leasing the building, Commercial Observer reported.

The Bluestone Group, Altmark Group, Madison Realty Capital and Galil Management bought the building in 2016 for about $39 million. The partnership then undertook a $45 million renovation shortly before landing a refinance deal with LibreMax.

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The first tenant, Westhab, a nonprofit that develops affordable housing, signed a 10-year, 8,233-square-foot lease in November 2019. The space is meant to serve as a central office for its employees in the city, according to Westhab.

The 282,000-square foot building was constructed as a baking facility for the A&P grocery chain in 1916. It was later used as a warehouse for food-processing equipment until the partnership acquired it.

A&P, which for 60 years was the nation’s largest grocery retailer, filed for bankruptcy in 2010 and shut down in 2015.

Madison Realty Capital declined a request for comment. Galil, Bluestone and Altmark didn’t immediately respond to a request for comment from Commercial Observer.

[CO] — Akiko Matsuda