The Row Hotel, a 1,331-key property located at 700 Eighth Ave. in Manhattan, is currently on the market for $350 million. According to Trepp, Eastdil Secured has been tasked with finding a buyer for this fee and leasehold interest property. The venture of investor David Werner and the Los Angeles County Employees’ Retirement Association acquired the fee interest in 2013 for $350 million while Highgate Holdings and Rockpoint Group purchased the leasehold interest in 2010 for $200 million with an additional investment of $140 million towards its redevelopment.
Situated between 44th and 45th streets on a prime location near Times Square, The Row Hotel is currently being used as a migrant shelter under contract by the city until at least2022. However, due to financial challenges brought about by COVID-19 pandemic shutdowns starting March2020,the loan on its ground lease was placed into special servicing.
As reported by Morningstar Credit during their recent review of delinquent loans from February that have yet to be moved into special servicing despite upcoming remittance dates; several larger loans were highlighted including Waterfront at Port Chester ($133.5million), Onyx ($38million), City Club Apartments Lafayette Park($28million),184 Liberty Corner Road($68million)and Spring Hollow Apartments($26million). These properties are experiencing various levels of delinquency ranging from late payments to falling below breakeven DSCRs (Debt Service Coverage Ratios).
In related news,Cincinnati Business Courier reported that GS-A Deerfield Crossing Owner LLC,a subsidiaryof Apollo Global Real Estate Management based outof New York City,defaultedon apromissory note worth$31.9millionsince purchasing Ohio’s Warren County-based Deerfield Crossing.Wilmington Trust,on behalf of lenders,filed an amended foreclosure complaint seeking over$30.millionplusinterestforthe default.Thepropertyisnowunder the management of Trigild as a receiver.
