Being close to Grand Central Terminal is a perk often proclaimed by pitching office landlords, but it’s not a panacea for the ills facing Manhattan’s market.
Clarion Partners and Alchemy Properties are in danger of foreclosure at 209-211 East 43rd Street, Crain’s reported. The 24-story, 211,000-square-foot property is only a block from the major transit hub.
Last week, a Miami-based plaintiff filed a lawsuit in Manhattan Supreme Court against a limited liability company with apparent links to a venture between the two owners, alleging default on a $57 million loan.
Individuals and the owners aren’t specifically named by the lawsuit, but principals for both companies signed documents for a $65 million loan issued by Signature Bank in 2015. The loan was amended to $57 million in 2022, then ultimately passed along to the plaintiff.
The plaintiff notified ownership of its default in April, claiming they owed $56.3 million, plus interest, according to the lawsuit.
Ownership says it is is charting a path forward; a spokesperson told the outlet that it remains “committed to achieving a positive and timely outcome for all parties involved through the successful recapitalization of the property.”
Alchemy and ABR Partners, in partnership with Clarion, acquired the leasehold on the Midtown East building in 2015 for $99 million, two years after Meadow Partners bought it for $61 million. Meadow spent $7 million on improvements and turned over much of the tenant roster during its brief ownership.
Tenants at the building include the missions of Bosnia, Mauritius and Costa Rica, Midtown Dental Services and physiatrist Douglas Schwartz. Japanese restaurant Izakaya Futago occupies the ground floor.
Asking rent for office space in the building ranges from $35 to $144 per square foot, according to CoStar. There’s roughly 30,000 square feet of space available across seven of the property’s upper floors, according to Avison Young.
— Holden Walter-Warner
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