Nightingale Properties’ prominent SoHo boutique office building faces foreclosure as yet another example of the city’s office market spiraling down.
The company, headed by CEO Elie Schwartz, appears to have fallen behind on its loan for the property at 300 Lafayette Street, Crain’s New York reported. According to materials detailing the foreclosure, lender TPG Real Estate Finance claims it is owed about $129 million.
Nightingale seems to have fallen behind on loan payments despite TPG granting extensions in 2021 and 2022. TPG is requesting the auction occur on Aug. 29, when the building will go to the highest suitable bidder.
The property spans seven floors and 86,500 square feet, including 63,000 square feet of office space atop 18,000 square feet of vacant retail. The owner was reported last year to be offering the property for sale, with bids expected to come in at $200 million — or about $2,444 a square foot.
Co-developers Related Companies and LargaVista built on the site previously home to a BP gas station. Nightingale purchased the building from Related and LargaVista soon after construction wrapped in 2019 for about $125 million.
Microsoft occupies most of the building after it inked a lease for over 60,000 square feet at the property shortly after construction wrapped. The lease lasts until late 2034, with an estimated office rent of $102 to $125 per square foot, according to CoStar.
CookFox Architects designed the property.
The property is in good company among the struggles facing Manhattan’s office market, where a report from Savills shows availability reached an all-time high in the second quarter of 70.3 million square feet.
– James Van Bramer
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