Chetrit Group has transferred a 21-story Midtown East office tower on Third Avenue in Manhattan to the lender that helped it avoid foreclosure on the property in 2021.
Chetrit handed the 617K SF building at 850 Third Avenue to private investment firm HPS Investment Partners in a deal valued at $266 million—about 60% less than the price Chetrit paid in 2019 to acquire the building—according to a report from Pincus. The transaction, which closed two weeks ago, translates to about $431 per SF.
In 2021, a $177M CMBS loan Chetrit used to finance the acquisition in 2019 of 850 Third Avenue from the Chinese conglomerate HNA Group went into special servicing. Harbor Group International, which held a $25M mezzanine loan on the property, initiated a UCC foreclosure auction.
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