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.