Jeff Sutton’s Wharton Properties scored a $176 million refinancing for a marquee Midtown retail property in Instances Sq..
Acore Capital supplied a three-year, floating-rate mortgage for 1551 Broadway, the positioning of American Eagle’s 26,000-square-foot flagship retailer, The Actual Deal has realized. The refi comes two years after Sutton secured an extension on a $180 million CMBS mortgage backed by the property. That mortgage was paid off in February, in line with Morningstar.
A Newmark workforce of Anthony Orso, Clifford Welden and Henry Stimler brokered the deal.
The mortgage replaces the CMBS mortgage originated in 2011 by Citigroup. The mortgage matured in July 2021 and Sutton went into forbearance as he tried to refinance the mortgage and mezzanine debt, in line with Trepp. Sutton defaulted on the mortgage 4 months later and it went into particular servicing. It returned to the grasp servicer after Sutton secured the extension.
In 2022, Deutsche Bank filed a foreclosure action on behalf of the CMBS bondholders, alleging that the Sutton entity defaulted on the mortgage. A supply stated on the time that Sutton was working issues out with a particular servicer regardless of the foreclosures go well with.
Wharton purchased each 1551 and 1555 Broadway in a 50-50 three way partnership with SL Inexperienced, for a complete of $82.5 million in 2005. The constructing at 1551 Broadway was once the positioning of the Instances Sq. Howard Johnson’s lodge, which closed in 2005. Sutton and SL Inexperienced demolished the buildings and constructed new retail that opened in 2009; Sutton ultimately purchased out SL Inexperienced’s stake in 1551 Broadway.
The property additionally features a 250-foot rentable LED signal that’s leased by American Eagle. The retailer’s lease expired in February 2024 and it signed a 10-year renewal, in line with an August Fitch Rankings report, however an up to date hire roll was not acquired.
Sutton declined to remark.
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