Blackstone files $24M pre-foreclosure at Mack office condo in Time Warner

Blackstone Group through the entity SIG CRE 2023 Venture LLC, filed a $24 million pre-foreclosure action at the 24,130-square-foot office condominium unit OFFA2 at 60 Columbus Circle, which an affiliate of the Mack family owns, in the Time Warner Center.

This office unit is also known as Unit-A2. According to the complaint, “Borrower failed to timely make the payment due and owing under the Note and Loan Documents on the Maturity Date… The Note matured by its terms on April 10, 2023.”

Case LINK

Court filings represent the position of one party and are not necessarily accurate or complete.

Other lenders have filed pre-foreclosure actions against Mack Real Estate Group.

The property is in care of Area Columbus LLC at the address and floor of Mack Real Estate Group, while the original signatory for the 2018 loan was Richard Mack.
According to S&P Global ratings documents, “The loan benefits from experienced sponsorship of WRS Advisors IV LLC, an affiliate of William L. Mack, Richard J. Mack, and Stephen F. Mack, who serve as the sponsor and non-recourse guarantor for the loan. The Mack family has over 60 years of retail experience and founded the Mack Real Estate Group (MREG). MREG is a developer, operator, investor, and lender across the United States.”

The property

The property in Lincoln Square has 24,130 square feet of built space according to a PincusCo analysis of city data. The city-designated market value for the property in 2022 is $27.6 million.

Prior sales and revenue

This property was sold for $23.5 million on March 19, 2008.

The neighborhood

In Lincoln Square, The majority, or 61 percent of the 19.1 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 24 percent of the space. In sales, Lincoln Square has near average sales volume among other neighborhoods with $203.1 million in sales volume in the last two years and is the 30th highest in Manhattan. For development, Lincoln Square has near average amount of major developments among other neighborhoods and is the 7th highest in Manhattan. It had 3.5 million square feet of commercial and multi-family construction under development in the last two years, which represents 18 percent of the neighborhood’s built space.

The block

There are no active new building construction projects on this tax block.

The surrounding

Within a 400-foot radius of 1 Columbus Circle, PincusCo identified seven commercial real estate items of interests occurred over the past 24 months. Of those seven items, one was for major renovation including a certificate of occupancy change. It was a permit issued on November 8, 2023 for the $13.3 million renovation of 68,653-square-foot educational (G) building with zero residential units at 17 West 60th Street. Of those seven items, four were sales above $5 million totaling $264 million. The most recent of the four was 2570a Nv Trust which bought two condo units in the 3,920-square-foot, 234-unit mixed-use building (RM) on 1 Columbus Circle and one other property for $11.5 million from Estate Of Rose-Lee Reinhard on October 30, 2024. Of those seven items, two were loans above $5 million totaling $473.8 million. The most recent of the two was Related Companies in which borrowed $450 million from MetLife and Pacific Life Insurance Company secured by two condo units in the 418,593-square-foot, 234-unit mixed-use building (RM) on 1 Columbus Circle on May 7, 2024.

Correction: In a previous version of this post, Mack Real Estate Group was identified as a defendant, but it is not, as it is not a borrower on the loan.

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