Klosed Properties and Namdar Realty Corp. recently acquired a $26.2 million bank note for a 15-story midtown office building located at 20 East 46th Street in New York City. The note was purchased from East West Bank, with the original balance being $30 million.
The 94,461 square foot building includes ground floor retail space and underwent a complete renovation in 2017 when it was purchased by Elie Schwartz’s Nightingale Properties through the loan obtained from East West Bank in 2016 to purchase its leasehold . However, earlier this year Nightingale defaulted due to misappropriation of funds from small-time investors on CrowdStreet crowdfunding platform . At the time of purchase by Klosed Properties and Namdar Realty Corp., the loan was already in default with an outstanding balance reduced to $26.2 million .
