The problems with Thor Equities at 597 Fifth Avenue are mounting.
According to a report by Trepp, the company’s $ 105 million commercial mortgage-backed securities lending related to the Charles Scribner’s Sons building has been put on special service. Joe Sitt’s company did not loan repayment on the 86,000 square foot building since July.
Thor’s attempt to repay part of the loan at a reduced amount was rejected by the duty officer, according to Trepp. The mortgage on the Midtown property is now at risk of “impending default.”
Thor bought the century-old building for $ 108.5 million in 2011. He landed the $ 105 million refinancing from UBS Real Estate Securities three years later. Thor also incurred additional debt, including a $ 25 million junior mezzanine loan from SL Green Realty and a $ 10 million senior mezzanine loan from Toronto-based Oxford Properties.
At the time of the 2014 deal, the 12-story Beaux-Arts building had an estimated value of $ 180 million.
The building has had a revolving door of retail tenants since Sephora vacated its 8,000 square foot space in 2017. Thor then signed a short-term lease with Lululemon for this space. The retailer left in 2019 for 20,000 square feet near 592 Fifth Avenue; Club Monaco replaced him the same year. Flexible office supplier Knotel has signed a 6,400 square foot lease for a different space in the building in the same year.
Meanwhile, Thor has unloaded some of his commercial properties in Manhattan in recent years, including one commercial condo at 51 Greene Street and three commercial condos at 212 Fifth Avenue. In August, the company defaulted on a $ 25 million mezzanine note from SL Green on 590 Fifth Avenue.
A spokesperson for Thor did not immediately return a request for comment.