(Bloomberg) – A $ 150 million loan is for sale on the property beneath the beleaguered Times Square Edition, a luxury hotel and $ 2 billion retail property that is at risk of foreclosure is.
The hotel and property below are owned by companies controlled by Maefield Development. According to loan records, the property owes $ 900 million, including the $ 150 million subordinated loan for sale.
The 5.1% interest mezzanine loan is in the “pivot position” of the debt stack, according to a marketing presentation by Jones Lang LaSalle Inc. That means the lender could take control of the property if the borrower defaults on payments, according to people familiar with the matter.
Mark Siffin, Maefield’s chief executive officer, did not respond to requests for comment. Kevin Davis and Brett Rosenberg, who are listed as sales directors for JLL, declined to comment.
The Edition, a ballasted house designed by Ian Schrager and Marriott International Inc., had financial troubles before Covid-19 rolled over New York hotels. Construction delays and problems filling the project’s retail space resulted in a group of lenders led by Natixis SA filing for foreclosure back in 2019. The property reopened to guests on June 1 after it was closed due to the pandemic.
Marriott and Natixis declined to comment.
–With the assistance of Patrick Clark.
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