Two Manhattan Offices Face Foreclosure

Two Class B office buildings in Midtown, Manhattan are facing foreclosure, after the owners allegedly defaulted on one of the buildings. The properties, which have been on the market since 2011, were mixed use commercial buildings in the Diamond District, according to The Real Deal. 

Joseph Stavrach, president and chief executive of Triangle, and Freddy Srour, of Atlas Ventures have reportedly failed to make payments to the buildings since December 2011 and its loans. 

The Real Deal confirmed that the balance of the loan is $51.9 million, which includes $46 million in principal, plus default interest and other charges. 

The lender of the loan, Deutsche Bank, was part of a securitized pool of loans that was put together with a second loan for $60 million for the second building facing foreclosure, at 363 Lexington Avenue. 

That loan has now been balanced to $76.7 million, which includes interest and other charges, The Real Deal reported.

According to The Real Deal, the 17-story building at 46th Street includes 115,000 square-feet of office space and 17,000 square-feet of retail space. It is on the market for $83 million through Eastern Consolidated. 

The building was 93 percent occupied and leased by 106 different tenants, mostly retail and jewelry design stores. There is also a penthouse used as a recording studio in the building. The net income of the building was $2.87 million.

The second property facing foreclosure, at 363 Lexington Avenue, is a fully occupied 28-story tower with 108,000 square-feet of office space and 20,000 square feet of retail space. That building has an unpaid balance of $76.7 million, including $59.9 million in principal, with additional interest and charges.

The lenders of both buildings have requested a court appointed receiver, and according to The Real Deal, analysts say the borrowers have been making partial payments to the lender.

"We're working it out with the bank," Stavrach told The Real Deal.