PCCP Snaps Up $111M Senior Loan on 462 Broadway
By Cathy Cunningham April 3, 2024 10:55 am
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PCCP has acquired the $111 million nonperforming senior loan on the office and retail building at 462 Broadway at “a slight discount,” Commercial Observer has learned.
The note, which was scheduled to mature this month, hit the market in January after the borrower, a company tied to Meringoff Properties, defaulted on its debt.
Aareal Bank was the note’s seller, and Newmark (NMRK)’s Adam Spies, Adam Doneger, Jordan Roeschlaub, Dustin Stolly and Chris Kramer led the sale.
PCCP is already familiar with the property, as it currently holds the $38.7 million B note on the property.
Meringoff has owned the mixed-use building, which sits at the corner of Broadway and Grand Street in the heart of Manhattan’s SoHo neighborhood, since 1981. In a previous life, it was known as the Mills & Gibb Building, named for the lace and linen importer that used it as its headquarters.
Today, 462 Broadway comprises 125,000 square feet of office space, 40,000 square feet of retail and features private rooftop space. The building is currently 84 percent leased to a roster of tenants that includes third-party verification service DoubleVerify.
Aareal’s loan, now owned by PCCP, dates back to 2016, and was topped up in 2022 to facilitate the addition of the roof terrace, Crain’s New York Business reported.
In November, Aareal began foreclosure action against Meringoff, claiming the landlord hadn’t made loan payments in several months, according to Crain’s.
Officials at PCCP, Newmark, Aareal and Meringoff Properties didn’t immediately respond to requests for comment.
Cathy Cunningham can be reached at ccunningham@commercialobserver.com.
