A&R Kalimian Realty is ready to offload The Aire months after defaulting on a nine-figure mortgage.
Albert Kalimian’s firm put the property at 200 West 67th Street in Lincoln Square up for sale, Crain’s reported. The move comes only a couple of months after Kalimian defaulted on the $194 million mortgage, which matured in November.
The 310-unit luxury property commands rents of at least $5,000 for one-bedroom units, but even favorable rental revenue didn’t help Kalimian cover costs at the building. Rental income only covered 87 percent of borrowing costs, according to a recent report from Moody’s. That was despite the building nearing full occupancy at the end of 2022.
One of the issues Kalimian brushed up against was the expiration of a 10-year tax abatement. The annual tax property bill was as low as $1.1 million at one point, but rose to $6.6 million — all while renewal rates lagged and ownership tossed out incentives and concessions to keep units occupied.
Kalimian purchased the former blood donation center on Amsterdam Avenue from the Red Cross in 2004 for $72.3 million. The building opened in 2010. There are also multiple retail units within, including a Polestar electric car dealership.
The need to sell The Aire is just the latest blow for Kalimian.
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Kalimian risking default at Lincoln Square luxury property
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How is the Aire up there?
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New rift in Kalimian family’s escalating legal saga
The move to sell comes a year after Eagle Point Properties principal Justin Amirian sued his uncle, Albert, over the management of a handful of properties in Soho and the West Village, including Amirian’s mother as a plaintiff in the case.
A month earlier, Justin sued Albert for allegedly withholding financial information about the Aire. Justin accused his uncle of costing building ownership $35 million following the Great Recession. A month before that, Kalimian sued Amirian for defamation.
Family patriarch Elias Kalimian, father to Edna and Albert, died in 2020, fueling the legal saga.
— Holden Walter-Warner