![Thor Equities' Joseph Sitt (Joseph Sitt, Getty)](https://static.therealdeal.com/wp-content/uploads/2022/09/TRI-Thor-Equities-completes-hat-trick-of-industrial-acquisitions-in-NJ-FEATUREIMG-150x107.jpg)
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Thor unloads troubled 470 Broadway to Sternlicht’s LNR
Joe Sitt’s firm sells the retail property for $25M in lieu of foreclosure
![Thor Equities’ Joe Sitt with 470 Broadway (Thor Equities)](https://static.therealdeal.com/wp-content/uploads/2022/10/main-NY-Thor-unloads-troubled-470-Broadway-to-Sternlichts-LNR.jpg)
Joe Sitt’s Thor Equities has sold its retail property at 470 Broadway in Soho, avoiding foreclosure.
The real estate firm unloaded the 6,600-square-foot building to special servicer LNR Partners for $25.4 million, according to city property records filed Wednesday. LNR is the special servicing arm of Barry Sternlicht’s Miami-based Starwood Property Trust.
Thor chose to sell the property “in lieu of foreclosure,” according to the deed. The firm acquired the retail building in October 2007 for $15.5 million.
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![Thor Equities' Joseph Sitt (Joseph Sitt, Getty)](https://static.therealdeal.com/wp-content/uploads/2022/09/TRI-Thor-Equities-completes-hat-trick-of-industrial-acquisitions-in-NJ-FEATUREIMG-150x107.jpg)
![Thor Equities’ Joe Sitt with 60 East 66th Street (Thor Equities Group, Leslie J. Garfield & Co)](https://static.therealdeal.com/wp-content/uploads/2022/07/featNY-Thor-Equities-UES-Odyssey-Continues-250x179.jpg)
![Thor Equities' Joe Sitt rendering of 2724 Northwest Second Avenue (Thor Equities, DWNTN Realty Advisors)](https://static.therealdeal.com/wp-content/uploads/2022/08/feat-MIA-Thor-Equities-lists-Wynwood-dev-site-for-32M-150x107.jpg)
The special servicer on a defaulted loan secured by the 470 Broadway property filed to foreclose on the note last year, citing $22.9 million owed by Thor. The debt consisted of $18 million in unpaid principal, $2.6 million in unpaid interest and $2.3 million in protective advances.
The building was behind on $17.5 million in CMBS debt that had been delinquent since 2020, when management was assigned to a special servicer. Thor took out a $20.5 million loan on the property in July 2012.
Issues at 470 Broadway surfaced last year when Trepp reported the value of the property had plummeted from $29.2 million to $5.6 million in the past decade. The value was cut in half from an appraisal of $11.2 million in 2020.
The shoe retailer Aldo had a two-floor lease, which was set to expire next October. The company paid $296 per square foot in 2019, equivalent to almost $2 million in annual rent.
But Aldo filed for bankruptcy in 2020 after having defaulted on rent at 470 Broadway, according to Trepp. The store has since closed.