Lender claims default on $35M loan secured by Olshan Properties Lenox Hill assets
The securitized trust Series 2014-C20, through special servicer Rialto Capital Advisors, claims a $34 million loan provided to affiliates of Olshan Properties in 2014 is in a maturity default, and the lender is seeking to foreclose. The assets include 205 East 60th Street, 207 East 60th Street, 209 East 60th Street, 211 East 60th Street, 211-213 East 60th Street and a 68,685-square-feet retail condominium unit at 200 East 61st Street.
The case was filed yesterday in State Supreme Court in Manhattan.
Case LINK
According to the complaint, “Borrower failed to make the payment required on the maturity date of the Loan on March 6, 2024 in direct violation of Article 2 of the Note and Section 10.1(a)(i)(A) of the Loan Agreement (the “Maturity Date Default”). Therefore, an Event of Default occurred under the Loan Documents.”
Violations and lawsuits
According to city public data, the property has received $600 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 Lenox Hill, The bulk, or 34 percent of the 53.3 million square feet of commercial built space are elevator buildings, with specialty buildings next occupying 30 percent of the space. In sales, Lenox Hill has the highest sale turnover among other neighborhoods in the city with $4.5 billion in sales volume in the last two years. For development, Lenox Hill has near average amount of major developments among other neighborhoods and is the 8th highest in Manhattan. It had 3.4 million square feet of commercial and multi-family construction under development in the last two years, which represents 6 percent of the neighborhood’s built space.
The block
On this tax block, PincusCo has identified the owners of five of the 23 commercial properties representing 138,985 square feet of the 241,371 square feet. The largest owner is Jane D’Agostino, followed by Olshan Properties and then Stonehenge Nyc. There are no active new building construction projects on this tax block.
The surrounding
Within a 400-foot radius of 205 East 60 Street, PincusCo identified seven commercial real estate items of interests occurred over the past 24 months. Of those seven items, three were sales above $5 million totaling $159.6 million. The most recent of the three was Sandor LLC which bought one condo unit in the 13,430-square-foot, 107-unit mixed-use building (RM) on 205 East 59th Street for $11.7 million from Zucker Organization on September 6, 2024. Of those seven items, four were loans above $5 million totaling $363.1 million. The most recent of the four was Atlas Capital Group, Fairstead, Blackstone Group, and Island Capital in which borrowed $272.7 million from Bridge Investment Group secured by the 157,364-square-foot, seven-unit rental (C5) on 162 East 61st Street and 10 other properties on September 12, 2024.
Direct link to the property’s ACRIS page and link to DOB NOW portal.