Alexico Group missing the Mark?

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At least four buyers are trying to back out of their contracts at the Mark Hotel, the landmark property at 25 East 77th Street and Madison Avenue that reopened in January after a $200 million renovation. Developer Alexico Group had originally planned to finance the makeover by selling 42 suites in the high-end hotel and residences, but scaled back that offering to 10 units due to a lack of demand. Seven contracts have been signed, but only two have closed for a combined $15.7 million, and Alexico has paid back only $20 million of the $255 million it borrowed from Anglo Irish Bank for the project. It also owes $4 million per year in rent for the site. While the hotel and retail portions of the project are supposed to cover much of the debt, occupancy rates at the Mark have been below 70 percent in recent weeks. [WSJ]

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