$132M foreclosure judgment signed for 15CPW retail owned by Fortress, Global Holdings, Zeckendorf, Madison Cap.

Manhattan State Supreme Court Justice Melissa Crane on May 21, 2024, signed a judgment of foreclosure and sale of the retail condominium unit at 15 Central Park West, with an alternate address of 1880 Broadway, in Lincoln Square, that has a lien of $132.7 million, according to state court records. The 84,240-square-foot retail condominium unit is owned by a joint venture of Fortress Investment Group, Global Holdings Management Group, Zeckendorf Development and Madison Capital.

The unit is expected to be sold at auction at 60 Centre Street in Lower Manhattan, led by referee Mark L. McKew, but the date was not set. The owners did not oppose the foreclosure motion, the court documents show.

Court 850093/2023 LINK

The special servicer for the $125 million CMBS loan filed a pre-foreclosure action in March 2023, citing a maturity default. The special servicer is LNR Partners.

The retail condo is at the base of the luxury condo development Zeckendorf Development along with Eyal Ofer’s Global Holdings Management Group built and completed in 2008.
In 2012, Morgan Stanley provided the $125 million loan secured by the retail unit to a borrower group that now includes affiliates of Fortress Investment Group, Global Holdings Management Group (formerly Eastgate Realty), Zeckendorf Development and Madison Capital, in order of their ownership percent. The loan was later securitized into MSBAM 2012-C6.

This foreclosure comes at a time of extreme difficulty for retail assets and commercial borrowing in general, with a decline in retail valuations and a rise in interest rates. A large tenant in the condo, Best Buy, vacated last fall as its lease was set to expire.

A spokesperson for the joint venture said in a statement to PincusCo in March 2023, “The retail condominium at 1880 Broadway is a well-managed and expertly maintained asset situated in the heart of the Upper West Side’s Lincoln Square neighborhood. We continue to believe in the asset’s long-term prospects and are actively marketing the space formerly occupied by Best Buy. We are in continuing discussions with LNR and are hopeful that we can come to an agreement on a mutually-beneficial resolution – one that reflects current and expected market conditions and allows us to reinvest confidently in the property.”

Global Holdings owns properties around the world, and in New York owns a number of assets including 1841 Broadway. Zeckendorf Development is an active luxury condominium developer with a large new project planned valued at $1 billion in the Hudson Square.

Direct link to the property’s ACRIS page and link to DOB NOW portal.