REO Monitor: 620 6th Avenue, NY

November 16th, 2009  ::  Posted by CRE Console

Chelsea Center has recently been placed in special servicing. The property has experienced several blows, including the bankruptcy filing by Filene’s Basement and the GAP not renewing their lease, which comprised approximately 33% of the property. LNR Partners has been designated as the special servicer for the 1st mortgage which was originated by Wachovia, in the principal amount of $260 million. The loan is part of the Wachovia 2006-C23 CMBS pool. Other interested parties include SL Green, as they hold a mezzanine position of $25.3 million and recently sued to preserve its investment. Prior to this lawsuit, another suit was reported by The Real Deal which involved Winick Realty and a commission invoice for over $800,000 related to the lease renewal by retailer TJ Maxx.

According to Real Capital Markets, Bonjour Capital, Yair Levy and the Chetrit Group acquired a partial interest from Jamestown in December 2005. This transaction placed a value of nearly $290 million on the property, at that time.

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