Madison Realty Capital has initiated enforcement measures against Fred Ohebshalom‘S Empire administration for alleged nonpayment of the $81.5 million loan secured by the hotel 250 Fifth Avenue, Court records show.
The lender who provides the loans from Santander Bank The lawsuit was filed earlier this year Supreme Court of the State of New York on Thursday, arguing that Empire had failed to repay several loans tied to the property and defaulted in March, according to the documents.
PincusCo first reported News of the foreclosure. Spokespeople for Madison and Santander did not immediately respond to requests for comment.
PincusCo reported that the property was last sold in June 2013 for $15 million.
Empire signed a loan agreement with Santander totaling $81.5 million. Cosmic Realty Partner in August 2019 to convert the historic NoMad building on the corner of West 28th Street into a hotel.
Soon after, Empire completed a 23-story, 8,400-square-foot hotel – The Fifth Avenue Hotel — with around 155 rooms, according to his websiteAccording to PincusCo, Madison purchased the loans from Santander in March.
“The Fifth Avenue Hotel continues to operate at the highest level, attracting and delighting travelers from around the world,” an Empire spokesperson said in a statement to Commercial Observer. “The owners remain committed to their long-term vision for the Fifth Avenue Hotel as they move through their refinancing process.”
Empire, the has a portfolio of more than 2,000 multi-family apartments and over 1 million square meters of commercial space, currently has $310.7 million in debt to lenders BarclaysSantander and New York Community Bankaccording to PincusCo.
You can reach Isabelle Durso at [email protected].
