Sagehall Picks Up Chetrit Organization’s 428 Broadway for $47M

An entity linked to New York City-based private real estate investment firm Sagehall has purchased Chetrit Organization’s office building at 428 Broadway for $47 million, according to city records filed Thursday. 

Jason Levine, managing director at Sagehall, signed for the buyer entity, 428 Broadway Owner. The seller entities are a partnership between the Chetrit Organization, for which Michael Chetrit signed on behalf of two holding companies, and investor American Industrial, co-founded by Roget Lerner and Jean-Marc Donics, the latter of whom signed on behalf of entity AI SoHo Investors.

Chetrit Group purchased the six-story property in Manhattan’s SoHo neighborhood in 2005 for $22.5 million. It became the property of the Chetrit Organization in the years following the family’s enterprise split in the mid-2000s. 

The building eventually ran into distress after its four-floor anchor tenant, WeWork, filed for bankruptcy in 2023. The coworking firm’s departure from 428 Broadway left the building 96 percent vacant. Its current level of occupancy is unclear. 

Lender LoanCore Capital Credit began foreclosure actions against 428 Broadway in 2024, alongside 1 Whitehall Street in the Financial District, claiming default on roughly $200 million worth of loans. The latter office building was sold earlier this year for $105 million to Nathan Berman’s Metro Loft and Idan Ofer’s Quantum Pacific Group for a planned residential conversion.

The mortgage debt on 428 Broadway appears to have changed hands from LoanCore to an entity belonging to Chetrit Organization and Donics, C&AI Soho Holding, in late 2025. The entity took ownership of the property in a recent foreclosure auction, allowing the partners to facilitate a sale. 

Donic declined to comment on the recent sale, while spokespeople for Sagehall and Chetrit did not immediately respond to requests for comment. 

The Chetrit Organization’s former headquarters at 404 Fifth Avenue was recently sold back to its lenders, Crain’s New York reported earlier this week, carrying $75 million in debt. Its counterpart in the family business, Chetrit Group, has been plagued by distress and legal troubles over the past year, and has indicated in court filings that it is in the process of being dissolved.

Emily Davis can be reached at edavis@commercialobserver.com.