Thor Equities Delinquent on $105M Loan Tied to Scribner Building

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

Joseph Sitt’s Thor Equities has missed two months of funds on a mortgage tied to the 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 delinquent on a $105 million mortgage tied to the property at 597 Fifth Avenue, in keeping with Trepp, which offers information on CMBS loans. Thor modified its mortgage on the 80,000-square-foot constructing in Might and was present on its funds till July. Nevertheless it has missed its August and September funds, Trepp information present.

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 took on extra debt, together with a $25 million junior mezzanine mortgage from SL Inexperienced Realty and a $10 million senior mezzanine mortgage from Toronto-based Oxford Properties.

On the time of the 2014 financing deal, the property had an appraised worth of $180 million with a Mortgage to Worth of 52.four %, in keeping with Trepp.

Thor purchased the property for $108.5 million in 2011. The departure of Sephora 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 on to a 20,000-square-foot house at close by 592 Fifth Avenue.

In Might 2019, the co-working operator Knotel signed a 6,400-square-foot lease on 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 publisher Scribner’s. It boasts 53 toes of frontage on Fifth Avenue. The constructing was additionally headquarters for Anthony Weiner’s 2013 mayoral marketing campaign, and was additionally residence to information mining agency Cambridge Analytica earlier than that firm collapsed in 2018.

Thor has made a serious pivot from its core retail real estate business to industrial. Final yr, it began a brand new enterprise, ThorLogis , which is devoted to buying and creating logistics properties. Amazon recently took greater than 300,000 sq. toes at a Thor property positioned at 280 Richards Road in Crimson Hook.

Thor has offloaded a few of its Manhattan retail properties in recent times, together with a industrial rental at 51 Greene Road and three retail condos at 212 Fifth Avenue.

In August, the corporate defaulted on a $25 million mezzanine observe on 590 Fifth Avenue from SL Green.

Demand for high-end retail house in New York Metropolis has dropped off considerably because the onset of the pandemic. Three retail buildings on Madison Avenue just lately offered for a mixed $45 million or $1,340 per sq. foot, a pointy decline from 2014 when retail properties on Madison Avenue have been promoting for greater than 5 instances that.

— to therealdeal.com

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