While UDR looks to sell its Columbus Square rental buildings, Stellar Management and the Chetrit Group are facing familiar distress on the connected retail component.
The loan backing the outdoor mall on Columbus Avenue between West 97th and 100th streets was sent to special servicing, Crain’s reported. The transfer took place “after missing several loan payments over the last few months,” as disclosed by Morningstar Credit Analytics.
Representatives for the two ownership entities did not comment to the publication, only adding to the mystery of why the loan is in special servicing for a second time. Local eyes and ears have seen little in the way of changes to business or consumer activity at the 270,000-square-foot shopping center, which is anchored by Whole Foods and Target.
The loan ended up in special servicing in late 2023 due to pandemic-induced retail tenant distress. Ownership ultimately agreed to a three-year extension on the $360 million mortgage.
This is just the latest blow to the Chetrits, particularly Meyer Chetrit. Last month, he was indicted on criminal charges, accused of harassing older, rent-regulated tenants in Chelsea over five years. He pleaded not guilty to the charges.
Chetrit is facing several civil suits, including accusations that he is shielding assets to avoid paying a $132 million judgment to a lender.
The Chetrits are allegedly defaulting on nearly $2 billion worth of loans, according to court documents and ratings agencies, including $280 million they personally guaranteed.
Meanwhile, Colorado-based multifamily real estate investment trust UDR and its partner, MetLife, are seeking up to $500 million in a sale of Columbus Square rental buildings. UDR bought the buildings at 775, 795, 805 and 808 Columbus Avenue, as well as 801 Amsterdam Avenue, in 2012 for $635 million from Stellar and Chetrit, which did not include the retail assets in the deal.
— Holden Walter-Warner
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