$65M pre-foreclosure filed at Alchemy-ABR’s Grand Central office tower

Blackstone Group and Rialto Capital filed a $65 million pre-foreclosure action alleging the loan secured by Alchemy-ABR Investment Partners’s leasehold interest in the Grand Central office tower at 211 East 43rd Street, was in a payment and maturity default. The lenders filed the case in New York State Supreme Court in Manhattan on October 16, 2025.
Court filings represent the position of one party and are not necessarily accurate or complete.

Case LINK

Blackstone and Rialto have been active lenders pursuing their borrowers in pre-foreclosure cases, filing 68 cases totaling more than $1 billion since June 2024. This is in a tie for the third largest, the other $65 million case being one brought against a Chetrit Group Garment District office building at 404 Fifth Avenue.

Signature Bank provided a $65 million acquisition leasehold loan to Alchemy for its purchase of the ground lease at 211 East 43rd Street for $98.75 million in September 2015. Following the closing of Signature Bank, Blackstone and Rialto in 2023 acquired a portfolio of loans including this one.

The lenders allege a continuing payment default since 2024. “Borrower failed to comply with the terms, covenants and conditions of the Loan Documents by failing to make payments when due commencing on February 10, 2024, and all subsequent payments due thereafter (the “Payment Default”).”

The fee interest in the property is owned by the estate of Sol Goldman’s Solil Management through the entity 211 East 43rd Street LLC.

The property

The office building in Grand Central has 177,000 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 50 feet and is 200 feet deep with a total lot size of 10,041 square feet. The zoning is C5-3 which allows for up to 15 times floor area ratio (FAR) for commercial and up to 10 times FAR for residential with inclusionary housing. The city-designated market value for the property in 2022 is $56 million. The most recent loan totaled $57 million and was provided by Signature Bank on December 20, 2022.

Prior sales and revenue

The 177,000-square-foot property generated revenue of $10.8 million or $61 per square foot, according to the most recent income and expense figures.

Violations and lawsuits

According to city public data, the property has received $1,825 in OATH penalties in the last year.

There were no lawsuits or bankruptcies filed against the property for the past 24 months.

The neighborhood

In Grand Central, The majority, or 83 percent of the 44.4 million square feet of commercial built space are office buildings, with hotel buildings next occupying 8 percent of the space. In sales, Grand Central has the 7th highest sale turnover among other neighborhoods in the city with $1.5 billion in sales volume in the last two years. For development, Grand Central is the 7th most active neighborhood among other neighborhoods. It had 9.3 million square feet of commercial and multi-family construction under development in the last two years, which represents 21 percent of the neighborhood’s built space.

The block

On this tax block, PincusCo has identified the owners of six of the 12 commercial properties representing 938,790 square feet of the 1,213,909 square feet. The largest owner is Alchemy Properties, followed by Bentallgreenoak and then Dalan Real Estate. There are no active new building construction projects on this tax block.

The owner

The PincusCo database currently indicates that Alchemy Properties owned at least five commercial properties with 45 residential units in New York City with 415,051 square feet and a city-determined market value of $92.7 million. (Market value is typically about 50% of actual value.) The portfolio has $387 million in debt, with top three lenders as JPMorgan Chase, Security Benefit Life Insurance Company, and Signature Bank respectively. Within the portfolio, the bulk, or 46 percent of the 415,051 square feet of built space are hotel properties, with office properties next occupying 43 percent of the space. They are all located in Manhattan.

The surrounding

Within a 400-foot radius of 211 East 43 Street, PincusCo identified eight commercial real estate items of interests occurred over the past 24 months. Of those eight items, one was in new building development. It was a new building permit issued on November 8, 2024 for a 113,707-square-foot residential (R-2) building with 106 residential units at 215 East 45th Street. Of those eight items, two were sales above $5 million totaling $160.2 million. The most recent of the two was David Werner Real Estate Investments and Metro Loft Management which bought the 289,356-square-foot, 50-unit office building (O4) on 675 3rd Avenue for $100.2 million from Durst Organization on April 16, 2025. Of those eight items, five were loans above $5 million totaling $1.1 billion. The most recent of the five was Metro Loft Management and David Werner Real Estate Investments in which borrowed $540 million from Madison Realty Capital secured by the 672,462-square-foot, one-unit office building (O3) on 219 East 42nd Street and one other property on May 29, 2025.

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