SL Green Realty, which has been looking to its loan books for cash in recent months, is foreclosing on a Fifth Avenue office tower.
Joe Sitt’s Thor Equities has defaulted on a $25 million mezzanine note on 590 Fifth Avenue from SL Green, according to Business Insider. The real estate investment trust has scheduled a foreclosure auction on the 19-story, 100,000-square-foot building for Oct. 15.
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Thor had reportedly tried to reposition the building’s store space into a flagship retail opportunity but was not successful, according to the publication. The property sits between west 47th and 48th streets.
Several tenants at the building had stopped paying rent amid the pandemic, resulting in Thor’s default on the loan, a source told Business Insider. Among those tenants was Knotel, but a spokesperson for the company declined to comment on the status of its rental payments at the building. A spokesperson for Thor also declined to comment to Business Insider.
Foreclosing on a property as a mezzanine lender means SL Green will have to take over payments on the building’s $83 million senior mortgage. [BI] — Akiko Matsuda