Thor Equities Previous Due on $ 105 Million Mortgage Tied to the Scribner Constructing

The Scribner Constructing at 597 Fifth Avenue and Joe Sitt from Thor Equities (Wikipedia Commons)

Joseph Sitt’s Thor Equities missed two months in cost on a mortgage tied to Charles Scribner’s Sons constructing in Midtown, the newest in a collection of setbacks for the prolific retail actual property investor.

Thor is now 60 days behind on a $ 105 million mortgage associated to the 597 Fifth Avenue property, in response to Trepp, which supplies knowledge on CMBS loans. Thor amended his mortgage on the 80,000 sq. foot constructing in Could and was updated together with his funds till July. However he missed his August and September funds, in response to knowledge from Trepp.

A spokesperson for Thor didn’t return a request for remark.

UBS Actual Property Securities offered the $ 105 million mortgage to Thor to refinance the property in 2014. Thor additionally incurred further debt, together with a $ 25 million junior mezzanine mortgage from SL Inexperienced Realty and a $ 10 mezzanine mortgage. million {dollars} from Toronto-based Oxford Properties.

On the time of the 2014 financing settlement, the property was appraised at $ 180 million with a loan-to-value ratio of 52.4%, in response to Trepp.

Thor purchased the property for $ 108.5 million in 2011. The Sephora departure in 2017 was a headache for thor , which introduced Lululemon into the house on a short-term lease, however misplaced the retailer in early 2019 when it moved to a 20,000-square-foot house close to 592 Fifth Avenue.

In Could 2019, the coworking operator Knotel signed a 6,400 sq. foot lease to the constructing. In November 2019, Membership Monaco changed Lululemon.

The 12-story Beaux Arts constructing, designed by Ernest Flagg, was inbuilt 1912 as the house of a bookstore for the Scribner’s editor. It has 53 toes of frontage on Fifth Avenue. The constructing was additionally the headquarters of Anthony Weiner’s 2013 election marketing campaign and in addition housed knowledge mining firm Cambridge Analytica earlier than that firm’s collapse in 2018.

Thor made a serious pivot to his core industrial actual property commerce to industrial. Final yr he began a brand new enterprise, ThorLogis , which is devoted to the acquisition and growth of logistics belongings. Amazon not too long ago took over 300,000 sq. toes at a Thor property positioned at 280 Richards Road in Pink Hook.

Thor has unloaded a few of his industrial properties in Manhattan lately, together with one industrial condominium at 51 Greene Road and three industrial condos at 212 Fifth Avenue.

In August, the corporate defaulted on a $ 25 million mezzanine be aware on 590 Fifth Avenue by SL Inexperienced.

Demand for high-end retail house in New York Metropolis has declined considerably because the begin of the pandemic. Three industrial buildings on Madison Avenue had been not too long ago offered for a $ 45 million or $ 1,340 per sq. foot, a pointy drop from 2014, when industrial properties on Madison Avenue had been promoting for greater than 5 occasions as a lot.

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