UPDATED, May 15, 6:05 p.m.: SL Green Realty bought $250M in CMBS debt on Sitt Asset Management’s 2 Herald Square.
The loan went into special servicing in March and matured in April. Attorney Stephen Meister, who represents Ralph and David Sitt, told the Commercial Observer that “Ralph enjoys an excellent relationship with SL Green and looks forward to resolving the matter.”
Wells Fargo originated the 10-year loan, which is now serviced by CWCapital. The
Real Deal recently reported that the loan’s term was extended by six months to allow the Sitts time to refinance.
The Sitt brothers bought the leasehold on the 11-story, 354,000-square-foot property for $270 million in 2007. Eddie and Jack Sitt later fell out with Raph and David, and the two sides have been fighting for control of the property since. The four brothers and their mother jointly own a 51.75 percent interest in the leasehold.
The building is losing around $1.7 million per month, but recently landed co-working company WeWork as a tenant. In late April Sitt Asset Management put the leasehold up for sale. [CO] — Konrad Putzier
Note: this post has been updated after CO’s original article was changed.