Metro Loft Faces Pre-Foreclosure at 180 Water Street
Metro Loft Management defaulted on a $265 million senior loan secured by its 573-unit rental building at 180 Water Street. The loan matured on November 6, 2024, and was not paid off. CWCapital Asset Management, the special servicer, filed a pre-foreclosure action in U.S. District Court. A $100 million mezzanine loan tied to the property also matured around the same time.
Other Metro Loft Properties Under Pressure
Metro Loft has experienced financial strain on additional properties. A $250 million loan for the office-to-residential conversion at 20 Broad Street went into special servicing in August 2024. Despite these challenges, Metro Loft remains active in acquiring and converting office buildings across Manhattan.
Goodwin Procter Signs Major Lease at 200 Fifth Avenue
Goodwin Procter signed a 20-year lease for 250,000 square feet at 200 Fifth Avenue in Midtown South. The law firm is relocating from the New York Times Building to the Flatiron District. The lease highlights continued demand for high-quality, well-located office space in Manhattan.
Recapitalization of 525 West 57th Street
Delaware Life provided a $93 million first mortgage, joined by additional equity from Himmel + Meringoff, to recapitalize 525 West 57th Street. The building houses tenants in the medical and lab sectors, and long-term leases with creditworthy occupants were a key factor in attracting capital. The recapitalization follows the collapse of its previous lender, Signature Bank.
Pre-Foreclosure Filed at Hotel Hayden
Morgan Stanley filed a $44 million pre-foreclosure action against Fortuna Realty Group, owner of the 122-room Hotel Hayden. The loan, originated in 2018, was acknowledged to be in default under a December 2023 Amendment and Forbearance Agreement. Morgan Stanley is now seeking repayment of approximately $43 million in principal, along with default interest and late charges.
Mayor Adams to Run for Re-Election as Independent
Mayor Eric Adams is expected to seek re-election as an independent, creating a complex political environment. He is likely to face former Governor Andrew Cuomo, a figure with strong real estate ties but a controversial history. Adams and Cuomo both have records of industry support. Adams’ move may sideline more progressive candidates and influence policy outcomes, depending on fundraising and general election dynamics.
130 William Street Workers Seek Standard Union Contract
Union workers at 130 William Street, represented by 32BJ SEIU, are negotiating a contract. They seek the same standards as other union members citywide, including industry-standard wages, health insurance, and retirement benefits. They have been in talks for two years following their 2023 union election.
Market Tension and Momentum in Manhattan
Manhattan’s commercial market is facing both headwinds and growth signals. Challenges include loan maturities, defaults, and pressure on hotels and conversions. Positive signals include large office leases like Goodwin Procter’s, and capital returning to stabilized, multi-use buildings like 525 West 57th Street. The political backdrop adds further uncertainty with the 2025 mayoral election approaching.