Isaac Kassirer’s Emerald Equity and David Werner Real Estate Investments have fallen behind on a CMBS loan backing a high-end rental building at 2 Cooper Square.
The firms are 30 days delinquent on the $65 million loan, Commercial Observer reported. Atlantic Development Group built the 143-unit luxury high-rise between East Fourth and East Fifth streets in 2010. Two years later, Wafra Capital Partners purchased the 70-year leasehold for $134 million, then sold it in 2019 to Emerald Equity and Werner for $85 million — a $50 million loss.
The investors charged some of the highest rents on the Bowery, with a three-bedroom apartment asking $20,000 per month. The luxury building features amenities such as a rooftop pool and a gym.
In 2019, Equity and Werner took out a CMBS loan securitized by the asset with Goldman Sachs, with an underlying occupancy of 96 percent. But occupancy has dipped this year, hovering at just 82 percent for the first three quarters of 2020.
Vacancies have plagued rental buildings in Manhattan. In October, the vacancy rate reached 5.75 percent while the total number of listings reached a 14-year high, at 15,923.
Elsewhere in its portfolio, Emerald Equity has also fallen behind. Its lender, Ladder Capital, moved to foreclose after the firm defaulted on a $32 million loan for four of its Harlem rental buildings.
[CO] — Georgia Kromrei