Thor Face Foreclosure Suit at 470 Broadway, sale of 115 Mercer
Joe Sitt’s Thor Equities is facing big problems at two retail properties in Soho.
According to PincusCo, a special agent on the company’s delinquent loan secured by the 470 Broadway property has filed a request for foreclosure on the loan. The plaintiff, who is a CMBS trustee, filed for foreclosure on Monday, citing debt of $ 22.9 million. The debt consists of $ 18 million of unpaid principal, $ 2.6 million of unpaid interest and $ 2.3 million of conservatory advances.
The building is at the origin of a CMBS debt of 17.5 million dollars for a loan in arrears since May 2020, date on which the management was entrusted to a special manager.
PincusCo reports that this is the third pre-lockdown lawsuit filed against Thor since 2019.
Thor purchased the 6,600 square foot building in October 2007 for $ 15.5 million. The developer took out a $ 20.5 million loan on the property in July 2012.
Thor’s problems at 470 Broadway surfaced in August, when The Real Deal reported that the property’s value had risen from $ 29.2 million to $ 5.6 million since 2012, according to Trepp. The value has been halved from the valuation of $ 11.2 million last year.
Aldo owns the entire lease for the two-story building, which expires in October 2023. The shoe retailer in 2019 paid $ 296 per square foot, which equates to nearly $ 2 million in annual rent. But the company filed for bankruptcy last May and has already defaulted on rent at 470 Broadway, according to Trepp.
The problems at 470 Broadway come as a New York State Supreme Court judge ordered the developer’s two commercial condos at 115 Mercer Street to be auctioned off within the next 180 days, PincusCo reported. Thor’s $ 37 million Deutsche Bank loan was turned over to a special service, which said in March 2019 that the developer had defaulted.
Foreclosure was filed in October 2019. On September 1, the judge signed the commercial condo foreclosure and sale order with a default judgment of $ 49 million, PincusCo reports.
However, Thor’s legal issues don’t end in Soho. The Real Deal reported data from Trepp in November showing Thor was behind on a $ 105 million loan to 597 Fifth Avenue after missed payments in August and September 2020. The loan was granted by UBS Real Estate Securities to refinance the property in 2014.
Additionally, East West Bank filed a lawsuit to seize a mixed-use property at 17 West 125th Street in Harlem in the spring. The lender claimed that Thor was behind on three loans totaling around $ 20 million.
[PincusCo] – Holden Walter Warner