Heitman Capital claims Meadow Partners’ $46M Renwick Hotel loan in default

Chicago-based Heitman Capital Management filed yesterday to foreclose on a loan with an original principal balance of $46.3 million provided to Meadow Partners and secured by the 173-unit Renwick Hotel at 118 East 40th Street in Murray Hill, Manhattan.

The pre-foreclosure suit was filed in New York State Supreme Court and is one of the largest commercial foreclosure cases filed in Manhattan since the Covid-19 pandemic began to damage the hospitality industry in the spring of 2020.

The suit alleges that Meadow did not make its April 10, 2020, interest payment and has not made any payments since then. Heitman sent a letter notifying Meadow on April 13 that it considered the loan in default. The case caption is Heitman Credit Acquisition XV, LLC v. MP Bedford Property LLC et al. This filing like all court filings is a statement of claims and allegations from the point of view of one party and such claims may or may not be accurate.

Heitman provided the loan in January 2019, which paid off a loan of the same value that HSBC Bank provided in 2016.

Meadow controls the property through a 99-year ground lease that it signed in 2014 that included a $22 million payment and additional ground rent.

Heitman catalogued a series of protective advances it claims it is making on behalf of Meadow, including ground rent payments of more than $110,000 per month, payments to Highgate Hotels for union dues and payroll costs, and other fees including to law firms, security firms and others. The outstanding principal of the loan is $41.45 million, according to the complaint. Meadow has not yet filed response papers.
-Adam Pincus