Chetrit Organization affiliate buys $40M defaulted debt at building it owns in SoHo

An affiliate of the Chetrit Organization through the entity C&AI Soho Holding, LLC bought a note with current debt totaling $40 million, from LoanCore Capital secured by Chetrit Organization’s office building (O5) at 428 Broadway in SoHo, Manhattan. The original principal of the loan was $60 million, borrowed in 2020.

The Chetrit Organization was led by Jacob Chetrit, who died in January 2025. His son Michael Chetrit is an executive with the firm.
The loan closed on December 23, 2025 and was recorded on January 6, 2026. The prior lender was LoanCore Capital which held debt that had an original loan amount of $60 million.The property has 42,000 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $zero per the PincusCo analysis. (The price per square foot analysis is the transaction price divided by square feet as reported in public records and assumes no air rights have been sold.)
The Chetrit Organization bought the building on February 24, 2005, for $22.5 million. An entity at the address of the Chetrit Organization bought the debt on December 23, 2025. LoanCore Capital filed a pre-foreclosure on October 21, 2024, alleging a loan with a total of $60 million was in default. The case referee in a recent court filing calculated that the outstanding debt was $40 million.

Prior sales, articles and revenue

The 42,000-square-foot property generated revenue of $2.9 million or $69 per square foot, according to the most recent income and expense figures.

The property

The office building in SoHo has 42,000 square feet of built space according to a PincusCo analysis of city data. The parcel has frontage of 51 feet and is 123 feet deep with a total lot size of 7,945 square feet. The lot is irregular. The property is in the SoHo-Cast Iron Historic District Extension. The city-designated market value for the property in 2022 is $14.8 million.

Violations and lawsuits

There were no lawsuits or bankruptcies filed against the property for the past 24 months. In addition, according to city public data, the property has received $6,305 in OATH penalties in the last year.

Development

There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The block

On this tax block, PincusCo has identified the owners of 10 of the 17 commercial properties representing 374,351 square feet of the 437,802 square feet. The largest owner is Rfr Holding, followed by Hcre Hung & Chong Real Estate and then Chetrit Group.
On the tax block, there were two new building construction projects totaling 191,280 square feet. The largest is a 100-unit, 96,427 square-foot residential (R-2) building submitted by United American Land and filed by Casey Martinez with plans filed February 9, 2023 and it has not been permitted yet. The second largest is a 105-unit, 94,853 square-foot residential (R-2) building submitted by Stellar Management and filed by Lyle Kamesaki with plans filed October 31, 2022 and it has not been permitted yet.

The majority, or 44 percent of the 437,802 square feet of built space are office buildings, with hotel buildings next occupying 28 percent of the space.

The borrower

The PincusCo database currently indicates that Chetrit Organization owned at least five commercial properties in New York City with 216,400 square feet and a city-determined market value of $12 million. (Market value is typically about 50% of actual value.) The portfolio has $20 million in debt, borrowed from OceanFirst Bank. Within the portfolio, the bulk, or 100 percent of the 216,400 square feet of built space are industrial properties, with development properties next occupying 0 percent of the space. They are all located in Queens.

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