GFP Real Estate Sidesteps Foreclosure at 515 Madison — For Now
By Mark Hallum March 31, 2023 2:28 pm
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GFP Real Estate’s Jeff Gural has had a rough few months but seems to be bringing the ship to an even keel
From defaulting on the $130 million commercial mortgage-backed securities loan for 515 Madison Avenue in December to being outbid on the Flatiron Building to a no-show buyer a week and a half ago, Gural’s prospects are now looking up after securing a three-year extension on the mortgage in question, according to multiple reports.
Gural’s firm took out the loan on the office property, also known as the DuMont Building, when it purchased it in late 2009 and later restructured the debt through Wells Fargo (WFC) in 2013, property records indicate. It’s unclear how much is still owed on the mortgage.
“As part of the extension, GFP Real Estate has committed significant new equity for future leasing and tenant improvement needs,” GFP Real Estate’s statement on the deal said. “515 Madison Avenue has secured more than 32,000 square feet in new leases this year, including high-end fashion retailers Zadig & Voltaire and Mark Ingram Atelier, among others. GFP expects to have the building fully leased by the end of the year.”
Robert Verrone of Iron Hound Management negotiated the loan extension on behalf of GFP Real Estate, but was not imediately available for comment.
Gural’s firm has used the building as its headquarters since late 2021 when it occupied 13,000 square feet. In the event that it would have to hand over the keys, GFP Real Estate would likely be forced to move out.
One of the more recent deals in the building was for Dr. Todd Sinett, a chiropractor and applied kinesiologist, who extended his practice’s 9,477-square-foot lease at the property for seven more years in late 2022, CO reported at the time.
Coworking firm Jay Suites may be one of the larger tenants in 515 Madison, having signed for 50,000 square feet in 2018.
Mark Hallum can be reached at mhallum@commercialobserver.com.
