Chetrit Org’s 850 Third Avenue heads to foreclosure auction

Mezzanine lender Harbor Group International initiated process

New York /
Aug.August 09, 2021 04:04 PM
The Chetrit Organization’s Michael Chetrit, Harbor Group International CEO Jordan Slone and 850 Third Avenue (Harbor Group, 850thirdavenue)

The Chetrit Organization’s Michael Chetrit, Harbor Group International CEO Jordan Slone and 850 Third Avenue (Harbor Group, 850thirdavenue)

The Chetrit Organization’s 850 Third Avenue is headed for the auction block.

The UCC foreclosure auction, scheduled for Sept. 14, was initiated by an entity associated with Harbor Group International, an investment firm headquartered in Norfolk, Virginia.

The firm holds a $25 million junior mezzanine loan backed by a Chetrit entity that owns the 21-story, 617,000-square-foot office building between East 51st and East 52nd streets, according to a public notice reviewed by The Real Deal.

Investor Jacob Chetrit and his sons Michael and Simon Chetrit acquired the property from Chinese conglomerate HNA Group for $422 million in 2019.

Harbor Group International and Michael Chetrit did not immediately return phone and email messages seeking comment.

The Chetrit Organization has been behind on its debt payments for the $177.2 million CMBS loan backed by the property. The loan went into special servicing in June and has been listed as delinquent since July, according to DBRS Morningstar. In addition to the $25 million Harbor Group loan, the Chetrit entity took out a $75 million senior mezzanine loan.

The trophy asset became a source of dispute in the pandemic when its biggest tenant, Discovery Communications, reportedly held onto its 190,000-square-foot space for two months without paying rent after its lease expired in May 2020.

The landlord sued the media company — which owns television brands such as Discovery Channel, HGTV and Food Network — for back rent, but the tenant countered, saying that its planned relocation to new offices at TF Cornerstone’s 230 Park Avenue South was delayed because of the pandemic, according to court papers.

State Supreme Court Justice Barry Ostrager sided with the tenant, saying that the case should be “mediated and not litigated.” The Chetrit Organization appealed the decision, and the case is pending review in the Appellate Division.





    Related Articles

    arrow_forward_ios
    From left: Arch Companies' Jeff Simpson and Hello Living's Eli Karp along with a rendering of 1580 Nostrand Avenue (Getty Images, Arch Companies, Hello Living)
    Eli Karp’s Hello Living says goodbye to Flatbush project
    Eli Karp’s Hello Living says goodbye to Flatbush project
    The Row hotel at 700 eighth avenue (Booking, Getty)
    Foreclosure looms at struggling Row Hotel
    Foreclosure looms at struggling Row Hotel
    171 Bowery Street, Urban Standard’s Seth Weissman and Grant Shapolsky (Getty, Linkedin, Google Maps)
    Stalled Bowery development site faces foreclosure
    Stalled Bowery development site faces foreclosure
    Ben Ashkenazy with 2067 Broadway (Google Maps, Getty)
    Ashkenazy, Gindis face UWS foreclosure as feud drags on
    Ashkenazy, Gindis face UWS foreclosure as feud drags on
    (Getty)
    New York suburbs, Chicago most vulnerable to home price declines
    New York suburbs, Chicago most vulnerable to home price declines
    A&E’s Douglas Eisenberg and 140 Riverside Boulevard (Google Maps, A&E RE, Getty)
    A&E lands $188M loan for UWS rentals — 5 months after buying them
    A&E lands $188M loan for UWS rentals — 5 months after buying them
    Hidrock Properties’ Abie Hidary and 140 Fulton Street (LinkedIn, Google Maps)
    Hidrock’s FiDi hotel project facing foreclosure
    Hidrock’s FiDi hotel project facing foreclosure
    Fortis Group’s Joel Kestenbaum with 161 Maiden Lane
    Mack Real Estate sues for $566M over Fortis project loans
    Mack Real Estate sues for $566M over Fortis project loans
    arrow_forward_ios

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

    Loading...