Frank Lloyd Wright’s Former Plaza Residence Finds a Buyer
A storied piece of New York real estate has gone under contract. Unit 409 at the Plaza Hotel, which served as the residence for Frank Lloyd Wright during the construction of the Guggenheim, was listed for $18.9 million in February and has recently found a buyer. This four-bedroom condo spans 4,000 square feet and features impressive 13-foot ceilings along with views of Central Park. It was acquired in 2009 by James Cohen, founder of Hudson Capital Properties, and Lisa Cohen, editor at DuJour Magazine, for $13 million, following an extensive renovation.
During Wright’s time in the residence from 1954 to 1959, he entertained notable personalities such as Marilyn Monroe and Arthur Miller. While the unit’s prestige is undeniable, the Plaza’s cachet has softened in recent years as high-net-worth buyers lean toward newer buildings with extensive amenities. Currently, 28 other units remain on the market.
Office Distress Grows—Even When Buildings Perform
The commercial sector continues to defy logic: buildings with near-full occupancy and strong rent rolls are slipping into special servicing or default. Why? A significant decline in valuations across the office sector has complicated the refinancing process. A property originally valued at $100 million might now appraise for $80 million, creating a $13 million gap when attempting to refinance a 65% loan-to-value (LTV) loan.
Nathan Berman of Metro Loft noted that loans secured at 3% interest now face refinancing rates of 6.25% or more. Even buildings that previously weathered distress are feeling the impact of accrued default interest, which has gone unpaid for years. David Wegman of Trepp reported that 5% of loans on office buildings with 85%+ occupancy are in distress—a striking figure. “In the office market, valuations have come down regardless of the building,” said James P. Godman of Kramer Levin. “You’ve got kind of a guilt by association.”
Recent examples include:
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180 Water Street: Defaulted despite 98% occupancy five months before loan maturity.
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Cunard Building: Sent to servicing in April 2024 despite steady performance.
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20 Broad Street & 1407 Broadway: Both highly leased—both now in distress.
Appraisers are now factoring in tenant churn, declining rent prospects, and operating cost inflation. Unless owners are prepared to bring in fresh equity or invest in upgrades, many are choosing to hand back the keys.
Four Pre-Foreclosure Filings Reflect Citywide Tension
The legal wave is building:
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1930 Bedford Ave (Prospect Lefferts Gardens): $21.8 million pre-foreclosure action after default in March.
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Multiple Borough Park Homes: $10 million loan default tied to missed interest payments.
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588-596 W 204th St (Inwood): $10 million loan default after the borrower failed to repay by May 2023.
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144 Fifth Ave (Flatiron): $8 million loan hit maturity default in February, still unpaid.
Lonicera Partners Quietly Assembles NoHo Development Site
Lonicera Partners is actively working on assembling a significant development site at the northwest corner of Great Jones Street and the Bowery. The firm acquired 348 Bowery, an industrial property with 15,570 additional buildable square feet, and took a minority stake in adjacent mixed-use buildings at 350 and 352 Bowery. Together, the properties total 38,890 buildable square feet. This strategy hints at a transformative future development on one of downtown’s most architecturally significant corridors.
Flushing’s Great Wall Supermarket Building Sells for $27M
A notable retail transaction closed in Queens: the property at 41-79 Main Street, home to Great Wall Supermarket, was sold for $27 million. Local buyers Sun Long Hing LLC and 168 J&C Holdings LLC financed the purchase with an $18.5 million loan from CTBC Bank. The property is currently undergoing renovations, including structural repairs and a new elevator. This deal underscores the growing appeal of grocery-anchored retail in outer boroughs.
Refinancing Continues Despite Volatility
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180 Maiden Lane: The 1.2 million square foot office tower was refinanced with a $193.1 million loan from Wilmington Trust. The asset was acquired in July 2024 for $297 million.
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36-10 W 31st Street (LIC): Maxie Development refinanced the 38,968 square foot mixed-use building for $17.9 million through Berkeley Point Capital.
These transactions show that while distress looms, well-positioned properties in core locations are still attracting capital.