A Tuesday foreclosures public sale introduced a paltry sale for Fifth Avenue property tied to Robert Siegel’s Metropole Realty Advisors. It might not be the saga’s remaining chapter, although.
Metropole’s 681 Fifth Avenue bought at public sale for a measly $100,000, Crain’s reported. Siegel attended the public sale on the New York County Courthouse, however reserved remark after seeing the property bought to lender Wells Fargo in a literal New York minute.
The workplace property is the primary Siegel has misplaced to foreclosures in his profession, however the loss has been years within the making.
Metropole acquired the property in 2005 for $86 million from Fortunoff, a New York-based furnishings and jewellery retailer. The constructing is positioned between East 53rd and East 54th streets, one of many world’s priciest stretches of retail actual property.
Metropole’s $215 million CMBS loan got here from a 2016 refinancing of the workplace and retail constructing by UBS and Citigroup. The mortgage, set to mature this November, changed a $125 million Ladder Capital mortgage that was scheduled to mature in 2018.
Fortunes fell in 2023, when Metropole became delinquent on the $215 million mortgage tied to the property, in keeping with Trepp. 4 years earlier, the constructing misplaced the Tommy Hilfiger flagship, the most important tenant on the Fifth Ave property, occupying 27 % of the 82,00 sq. toes. The style designer additionally represented 77 % of the whole annualized base hire when the mortgage was securitized.
In 2024, particular servicer Rialto Capital sued Metropole on behalf of the lenders for failing to make its CMBS mortgage funds on the 12-story constructing over the previous months. On the time, Metropole allegedly missed month-to-month funds of about $773,000, totaling roughly $2.4 million.
The lawsuit set the foreclosure proceedings in movement. Right now, the constructing has greater than $260 million in whole defaulted debt connected to it.
However its prospects may very well be dimmed by Siegel himself, who reportedly owns land and easements for properties straight south of 681 Fifth Avenue. That might give him the chance to develop a mission that straight interferes with 681 Fifth Avenue.
One other risk, an individual acquainted advised Crain’s, may very well be Siegel attempting to reacquire the constructing earlier than launching an office-to-residential conversion.
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