Pomerancs default on $23M loan for Lower East Side hotel

Loan matures as owners negotiate workout at Sixty LES

Pomerancs Default on $23M Loan for Lower East Side Hotel
Jason and Michael Pomeranc with 190 Allen Street (Kelleecaitlin, CC BY-SA 4.0 via Wikimedia Commons, Getty, Google Maps)

The Pomeranc family is facing financial troubles at its Sixty LES Hotel.

A $23 million collateralized loan obligation on the 141-key hotel at 190 Allen Street was reported as non-performing this month, according to CRED iQ. The loan was not paid off at its extended maturity date of April 6, according to the commercial real estate data company.

An investor in the Lower East Side hotel, Mitchell Adelstein, said the lender had agreed to an extension and Adelstein’s firm, Capstone Realty Group, is helping the Pomerancs work out the financing.

“There’s no delinquency per se,” Adelstein said. “There’s no delinquency in payment. We’re working with the lender to replace the loan or extend the loan.”

An LLC tied to the Pomeranc family’s Sixty Collective financed the hotel in 2019 with a $62 million mortgage from the lender, Argentic, which then sold the senior debt on the CLO market. A loan modification in 2021 added $2.2 million to the balance.

Sixty Collective — run by brothers Jason, Lawrence and Michael Pomeranc – also owns the Sixty Beverly Hills Hotel, which has had its own money problems. A $40 million loan backed by the Beverly Hills hotel went to special servicing in August. It had gone to special servicing during the pandemic and was granted a forbearance, Bisnow reported at the time.

Adelstein said the owners are “working on a financing solution on that property and hopefully will have that resolved shortly.”

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The Pomeranc brothers founded the hotel group in 2014 after selling their interests in Commune Hotels & Resorts and Thompson Hotels. Sixty Collective sold the 97-key Sixty Soho Hotel at 60 Thompson Street last year to trendy boutique hotel chain Standard International for $106.9 million, setting a post-pandemic record.

The Pomeranc family has been involved in real estate development since 1952, according to the New York Times. It wasn’t until the late 1990s, when Jason joined the business, that the family decided to expand into the luxury hotel market and opened the boutique hotel at 60 Thompson.

The 20-floor Sixty LES features an outdoor swimming pool and Blue Ribbon Sushi.

Argentic could not immediately be reached for comment.

Orion Jones contributed reporting.

This article has been revised to clarify terms of the financing at the Sixty LES Hotel.

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