New York Life Insurance Company files foreclosure lawsuit against Marquee Fifth Avenue retail facility, alleging companies affiliated with Jeff Sutton’s Wharton Properties and SL Green Realty defaulted on $300 million in loans I was.
Lenders claim that 717 GFC LLC, which lists the same address as Wharton Properties, now owes $314 million, including interest and late fees. The loan is secured by his 717 Fifth Avenue retail store and his fourth-floor office, with Dolce & Gabbana and Armani as tenants.
The lawsuit was filed in Manhattan on Wednesday and has no index number. That means the county clerk hasn’t considered it yet.
Partners, including Sutton and Stanley Chella, purchased retail space in a 26-story office building in 2004. Two years later, Sutton bought Partner SL green Invested in property. In 2012, Sutton acquired most of his SL Green stake, leaving Mark Holliday’s company with 10.92% of his, according to SL Green’s filings with the U.S. Securities and Exchange Commission.
In 2012, New York Life Insurance and TIAA provided a $300 million loan of $150 million in two halves. The property also took advantage of his $355 million mezzanine loan, according to SL Green’s filings with the SEC.
New York Life bought half of TIAA’s loans last fall, according to the lawsuit. Insurance companies claim the property owner failed to pay off his July 11 loan.
The property owner said Wednesday that a foreclosure lawsuit has been filed even though both sides have worked out the matter.PincusCo was the first to report news of the foreclosure.
A spokesperson for 717 GFC said, “Today’s application was professional. The senior and mezzanine lenders of the property are currently reviewing terms and are working to reach a comprehensive agreement on an extension with a group of lenders. We are looking forward to it,” said a 717 GFC spokesperson.
Anbo In 2015, the office portion of the tower, known as the Glass Corning Building, was purchased from Blackstone.
By 2019, a Chinese insurer was reportedly considering selling part of the building, but still owns the property. The building sits on the corner of Fifth Avenue and he 56th Street, across from Trump Tower, in an area boasting some of the highest retail rents in the country.
Sutton is one of the city’s largest retail landlords.Also owns his Wharton property. 724 Fifth Avenue, including the Prada flagship store. The building achieved a $235 million refinancing last year.
An attorney for New York Life Insurance did not respond to a request for comment.