Caspi Sells Financial District Office Building to Stave Off Foreclosure [Updated]
By Nicholas Rizzi January 9, 2024 1:38 pm
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Caspi Development offloaded its Financial District office property to avoid foreclosure, according to property records.
A company tied to Caspi and Mactaggart Family & Partners sold the six-story 74 Broad Street to Nassimi Realty in a $19.6 million deed in lieu of foreclosure sale made public Monday, property records show. The deal was first reported by PincusCo.
The total price in property records was for the full amount forgiven, but Nassimi actually paid Caspi a little over $15 million for 74 Broad and a Williamsburg, Brooklyn, property, according to Kevin Nassimi, vice president of Nassimi Realty.
“We’ve been growing our office and retail portfolio in Manhattan and the other boroughs in the past few years,” Nassimi said in a statement. “We have faith in the New York City office market and look forward to the opportunity.”
Caspi picked up the building between Marketfield and Stone streets for $14.3 million in 2014 and later redeveloped it into a “boutique” office building with spaces ranging from 4,000 to 5,000 square feet, according to property records and Caspi’s website.
However, Caspi defaulted on $17 million in loans and interest and was facing foreclosure from its lender, Pacific Western Bank, in 2022, Crain’s New York reported. Caspi’s lawyer, Neil Miller, denied to Crain’s that the owner was behind on its payments.
“Caspi Development has continued to make monthly debt-service payments. The property was fully leased during COVID and rent relief was extended to tenants,” Miller told Crain’s. “The property is listed for sale through Avison Young.”
The 74 Broad deal also included another deed in lieu of foreclosure sale between Caspi and Nassimi.
A separate entity tied to Caspi and Mactaggart sold 134 Broadway in Williamsburg to Nassimi in a deed in lieu of foreclosure deal of $17.3 million, according to property records and PincusCo.
Caspi bought the six-story Williamsburg office building for $18.9 million in 2019 but also faced a potential foreclosure from Pacific Western in 2022 after the lender said Caspi owed more than $15.3 million in missed payments and interest on its $16.2 million loan, according to court records.
Representatives for Caspi and Mactaggart did not immediately respond to requests for comment. It’s unclear who brokered the sales. A spokesperson for Avison Young did not immediately respond to a request for comment.
Update: This story has been updated to correct the price in property records was the foreclosure amount forgiven.
Nicholas Rizzi can be reached at nrizzi@commercialobserver.com.
