Problems borrowing Thor Equities on 597 Fifth Mountain


Joe Sitt and Charles Scribner sons building in Midtown (Thor, Google Maps)

Joe Sitt and Charles Scribner sons building in Midtown (Thor, Google Maps)

Thor Equities’ problems at 597 Fifth Avenue are increasing.

According to a report by Trepp, a $ 105 million commercial mortgage-backed securities loan linked to the Charles Scribner Sons Building has been put into a special service. Joe Sitta did not loan payment in a building with an area of ​​86,000 square meters from July.

Thor’s attempt to repay part of the loan with a reduced amount was rejected by the staff, according to Trepp. The Midtown mortgage is now at risk of “immediate insolvency”.

Thor bought the century-old building for $ 108.5 million in 2011. Three years later, he received $ 105 million in refinancing from UBS Real Estate Securities. Thor also took on additional debt, including a $ 25 million mezzanine loan from SL Green Realty and a $ 10 million mezzanine loan from Oxford Properties in Toronto.

At the time of the 2014 agreement, the 12-storey Beaux Arts building had an estimated value of $ 180 million.

The building has had revolving doors for retail tenants since Sephora left its 8,000-square-foot space in 2017. Thor then entered into a short – term lease with Lululemon for that space. The retailer left for 201,000 square feet in 2019 at nearby 592 Fifth Avenue; In the same year he was replaced by Club Monaco. Flex-office provider Knotel signed a Rent 6,400 square feet in the same year for a different space in the building.

Meanwhile, Thor has put off part of his retail real estate in Manhattan in recent years, including a department store at 51 Greene Street and three retail apartments at 212 Fifth Avenue. In August, the company fell on a $ 25 million mezzanine bond from SL Green on 590 Fifth Avenue.

Thor’s spokesman did not return a request for comment immediately.

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