Chetrit Group’s $95M CMBS Loan Secured by Midtown Office Enters Special Servicing
The loan is scheduled to mature in January 2025, and fills just over 10% of a CMBS conduit package
By Brian Pascus May 15, 2024 2:05 pm
reprints
The $95 million CMBS loan secured by 393-401 Fifth Avenue, a prewar office building in Midtown Manhattan, has been sent to special servicing due to an imminent maturity default, according to a report from Trepp.
The loan was scheduled to mature in January 2025, and fills just over 10 percent of a CMBS conduit package.
Made up of two adjoining buildings, 393-401 Fifth Avenue is a 218,162-square-foot commercial property constructed in 1905 and renovated in 2004 that features both ground-floor retail and office space. The building was appraised in 2014 at a value of $165 million, per Trepp.
Crain’s reported in 2020 that SL Green sought to exit its $30 million mezzanine debt investment in the property. The most recent property record shows the building’s owner is 401 Fifth LLC, whose same property records for the building from a 2014 acquisition are signed by Meyer Chetrit, an executive at the Chetrit Group in Manhattan.
A representative for the Chetrit Group confirmed Judah Chetrit manages the property in the firm’s portfolio.
The building has fallen on hard times recently. Last month, it learned it will lose its top retail tenant, American Eagle, which will vacate nearly 200,000 square feet of space to fill 393,035 square feet of space at 63 Madison Avenue, according to CoStar. American Eagle’s lease was scheduled to run until May 2026.
Most recent data metrics from Trepp show the building had 92 percent occupancy and a debt service coverage ratio of 1.90X
The Chetrit Group did not respond to requests for comment on the special servicing transfer.
Brian Pascus can be reached at bpascus@commercialobserver.com
