Home News Loancore Faces Forced Sale of Plaza District Building

Loancore Faces Forced Sale of Plaza District Building

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Photo illustration of 111 East 59th Street (Google Maps, Getty)

Update Oct 6 2022 12:15 AM: Plaza District building owners can quickly become unattractive personas in their offices and retail establishments.

LoanCore Capital sued This week it opposed a joint ownership venture at 111 East 59th Street involving Dune Real Estate Partners and Puma Construction Corporation. The lender claims the owner defaulted on his $193.4 million loan and is seeking a forced sale of the retail and office properties.

Proceeds from the forced sale, along with legal costs, late fees and interest, will be used to pay the alleged debt.

Partners Princeton International Properties, Dune Real Estate Partners, Empire Capital Holdings Agreed to purchase in 2015 Blindness advocacy nonprofit Lighthouse International has purchased a 15-story building for $170 million. The joint venture planned to convert the lower floors of the 200,000-square-foot building for large retail tenants.

In 2017, LoanCore Capital, an affiliate of Jefferies LoanCore, $195 million funding package in the building. In addition to previous $103 million loan, financing includes $50 million mortgage, $8.6 million loan combined with previous $16.8 million loan, and combined with previous $9.4 million loan included a $7 million loan taken out.

At the time of the loan, the developer was in the middle of a $20 million capital improvement project. But instead of trying to lure in large tenants, the venture turned most of the building into a medical facility, with commercial space on his first two floors.

Princeton and Empire Capital gave up ownership of the property in 2018.

The lender claims in the lawsuit that the building owner defaulted in September 2020 after failing to repay interest on the loan. Additionally, the building plumber’s insurance expired in June, resulting in a partial work stoppage order. Three months ago, his original 6th floor temporary occupancy certificate expired.

The building is rented to Premier Medical Group and a cashierless Starbucks.

An earlier version of this article referred to Princeton International Properties and Empire Capital Holdings as the current owners of 111 East 59th Street, based on the Commercial Observer’s report on the lawsuit. The company moved out of the property in 2018, with updated details of the lawsuit.

— Holden Walter Warner

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