Judge orders foreclosure sale for Thor’s 115 Mercer condos in Soho, $49M in debt

By Adam Pincus

A New York State Supreme Court judge ordered that Thor Equities’ two retail condominiums at 115 Mercer Street in Soho, that have a default judgment of $49 million, should be sold at auction in the next 180 days.

The lender provided a $37 million loan to Joe Sitt’s Thor Equities, which purchased the units in 2013 for $16.4 million, and obtained a $17 million mortgage at the time from Mesa West. Deutsche Bank originated the $37 million loan in December 2014, and a few months later the debt was rolled into a commercial-mortgage backed security, COMM 2015-DC1 Mortgage Trust.

In March 2019, management of the loan was turned over to a special servicer, and the servicer reported the borrower had defaulted on loan payments on the property, the Wall Street Journal reported at the time. The space at the was occupied by fashion retailer The Kooples.

In October 2019, a trustee for the CMBS bondholders filed to foreclose on the loan. The judge signed the order of foreclosure and sale on September 1, 2021.

Thor is facing foreclosures at two other properties. The most recent was filed on October 11, 2021, at 470 Broadway, which PincusCo reported on today. The other pre-foreclosure filing was at 17 West 125th Street, which Thor bough in 2015 for $29.6 million from FBE Ltd. and TreeTop Development and others, and took out a $23 million acquisition and rehab construction loan.

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