Proximity to Grand Central Terminal is a benefit often trumpeted by office building landlords, but it is not a panacea for the ills facing the Manhattan market.
Clarion Partners and Alchemy Properties are in danger of foreclosure at 209-211 East 43rd Street, Crain’s reported. The 24-storey, 211,000 square meter property is just steps away from the main transport hub.
Last week, a Miami-based plaintiff filed a lawsuit in Manhattan Supreme Court against a limited liability company apparently linked to a business between its two owners, alleging default on a $57 million loan.
Individuals and the owners are not specifically named in the lawsuit, but the principals of both companies signed documents for a $65 million loan issued by Signature Bank in 2015. The loan was amended to $57 million in 2022 and ultimately passed on to the plaintiff.
The plaintiff notified the owner of his default in April, claiming he was owed $56.3 million plus interest, according to the lawsuit.
Ownership says it charts a path forward; a spokesperson told the outlet that it “remains committed to achieving a positive and timely outcome for all parties involved through the successful recapitalization of the property.”
Alchemy and ABR Partners, in partnership with Clarion, acquired the leasehold on the Midtown East building in 2015 for $99 million, two years after Meadow Partners bought it for $61 million. Meadow spent $7 million on improvements and transferred much of the tenant base during his short ownership.
Tenants of the building include the Missions of Bosnia, Mauritius and Costa Rica, Midtown Dental Services and physical therapist Douglas Schwartz. The Japanese restaurant Izakaya Futago is located on the ground floor.
According to CoStar, rent for office space in the building ranges from $35 to $144 per square foot. According to Avison Young, there is approximately 30,000 square feet of space available on seven of the property’s upper floors.
— Holden Walter Warner
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