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Valuation of Thor Equities’ 470 Broadway slashed

Developer falls behind on $17.5M loan at prime Soho location: Trepp

470 Broadway and Thor Equities' Joe Sitt (Thor Equities)
470 Broadway and Thor Equities' Joe Sitt (Thor Equities)

Thor Equities’ 470 Broadway in SoHo may have Joe Sitt saying, “Oh, no.”

The 6,600-square-foot building’s value has plummeted from $29.2 million to $5.6 million in the past nine years, according to Trepp. Even a year ago the property was appraised at $11.2 million.

The retail building backs $17.5 million in CMBS debt — a loan delinquent since May 2020, when it was transferred to special servicing.

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The two-story building is fully leased to Aldo, but the shoe retailer filed for bankruptcy in May of last year and has previously defaulted on rent at the address, according to commentary from Trepp. Aldo’s lease expires in October 2023.

In 2019, Aldo paid $296 per square foot — nearly $2 million in annual rent.

The building at 470 Broadway hosts 3,300 square feet on each of its two floors, with a total of 35 feet of frontage on the prime retail strip. It was built in 1910 and renovated in 2008.

It isn’t the only Thor building in Manhattan that’s struggling. In November, the developer fell behind on a $105 million loan at 597 Fifth Avenue. At 17 West 125th Street in Harlem, Thor is delinquent on three loans totaling about $20 million.

“While we believe in the future of New York City and that retail will bounce back, we’ve been very focused on the growth of our life sciences and industrial real estate divisions, Thor Sciences and ThorLogis, over the past six years,” said Katie Smith, a spokesperson for Thor Equities.

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Joe SittRetailSohoThor EquitiesTrepp