MetLife Forecloses on Upper East Side Grocery Retail Condominium

MetLife has taken back the keys from one of its borrowers for a grocery retail property and parking garage on Manhattan’s Upper East Side in a transaction valued at $44.1 million.

The firm, which provides insurance, annuities and employee benefits, executed a deed in lieu of foreclosure action against Harrison, N.Y.-based real estate investment and development firm Gateside Corporation, reclaiming the property at 188 East 64th Street, according to a filing in property records late Monday.

Elizabeth Smoltz, a grocery-anchored real estate professional, signed on behalf of the borrower. A CBRE team led by Daniel Kaplan advised the borrower.

MetLife had provided the landlord with $58.9 million in financing stretching back to 2017, mortgage documents indicate.

MetLife did not immediately respond to a request for comment, while the Gateside Corporation could not be reached for comment. CBRE declined to comment.

Gateside had owned the property since at least 1989.

The retail property — once leased to supermarket chain Morton Williams — and its parking garage are attached to the Royale, a 42-story residential condominium property built in 1986. The development is on the southwest corner of Third Avenue and East 64th Street.

In March, the board of managers for the Royale condos placed a lien on the retail condo for unpaid common charges surpassing $82,000, according to property records.

Mark Hallum can be reached at mhallum@commercialobserver.com.