The specter of foreclosure is again turning its head to Joseph Sitt in SoHo.
Blackstone filed a foreclosure lawsuit against Thor Equities at 25-27 Mercer Street in the trendy New York City neighborhood, Crain’s reported. The investment giant alleges Thor defaulted on a $10 million mortgage backed by the 9,500-square-foot commercial condominium.
Blackstone notified Thor of the alleged default on March 25. It then moved quickly to take the next step, filing the foreclosure case less than a week after notification. The loan was originated by Signature Bank in 2016, then assigned to a Blackstone affiliate last May.
Thor allegedly owes $9.5 million on the loan, including interest and fees, the complaint states. Thor acquired the property for $4.8 million in 2014. Hungarian women’s apparel shop Nanushka occupies half the space, while the other half appears to be vacant after Zcrave moved to Canal Street in the winter.
A spokesperson for Thor did not respond to a request for comment from Crain’s.
Thor was one of the biggest property owners in Soho, but has been paring down its portfolio in the neighborhood.
Thor sold its property at 470 Broadway to special servicer LNR Partners for $25.4 million, avoiding a foreclosure threat at the property. Last year, Thor was foreclosed upon at 440 Broadway after the lender, Midland, alleged Sitt’s firm defaulted on its original $13.2 million loan.
In recent years, Thor also sold 155 Mercer Street for $60 million — below the $93 million it paid for the site in 2016 — and 496 Broadway for $13 million after buying it a decade earlier for $21 million.
At the end of last year, Thor allegedly defaulted on the $51 million loan tied to 135 East 125th and 126 East 126th Streets in East Harlem, driving the debt into imminent default and special servicing.
On the other side of the spectrum, Sitt acquired the former Tootsie Roll factory at 275 Park Avenue in Clinton Hill for $58.5 million last summer.
Read more
Thor snags sweet deal for former Tootsie Roll factory
Thor loan lands in default amid retail portfolio pains
Joe Sitt loses two Manhattan buildings to foreclosure
