Sovereign Partners, HudsonPoint sign $268M acquisition loan with Ladder for office, retail in Midtown East

Sovereign Partners and HudsonPoint Capital signed a $268 million acquisition loan package with Ladder Capital for office and retail at 575 Fifth Avenue in Midtown East, Manhattan in two transaction covering four commercial condominium tax lots.

In the larger loan covering the office portion, Sovereign Partners and HudsonPoint Capital through the entity 575 5th Owners, LLC as borrower signed an acquisition loan with lender Ladder Capital through the entity Ladder Capital Finance LLC valued at $220 million for the office condo at 575 Fifth Avenue in Midtown East, Manhattan.
The deal closed on April 16, 2026 and was recorded on May 1, 2026. The prior lender was TPG Real Estate Partners which held debt that had an original loan amount of $300.8 million. The property has 371,374 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $592 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.)

In the smaller loan covering the retail portion, Sovereign Partners and HudsonPoint Capital through the entity 575 5th Retail Owners, LLC as borrower signed an acquisition loan with lender Ladder Capital through the entity Ladder Capital Finance LLC valued at $48 million for three retail properties including the retail condo units.
The deal closed on April 16, 2026 and was recorded on May 1, 2026. The three properties have 40,406 square feet of built space according to a PincusCo analysis of city data. The loan price per built square foot is $1,187 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 owners bought the four condo units on April 16, 2026, for $378 million. The signatory for Sovereign Partners and HudsonPoint Capital was Cyrus Sakhai . The signatory for Ladder Capital was David Traitel .

Prior sales, articles and revenue

Commercial Observer reported on April 13, 2026 that Sovereign Partners and HudsonPoint Capital paid $385 million to Beacon Capital Partners and MetLife for 575 Fifth Avenue, Manhattan, NY.

The property

The office condo in Midtown East has 371,374 square feet of built space according to a PincusCo analysis of city data. The parcel has a total lot size of 371,374 square feet. The city-designated market value for the property in 2022 is $191.4 million. Ladder Capital on April 16, 2026 bought a loan with an original principal of $300.8M from TPG Real Estate Partners signed by Greg Kaliman , secured by 575 5th Avenue, when owned by Sovereign Partners and HudsonPoint Capital.

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 not received any significant violations in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 9, 2012. There are no active new building construction projects or major alteration projects with initial costs more than $1 million on this tax lot.

The neighborhood

In Midtown East, The majority, or 81 percent of the 62.6 million square feet of commercial built space are office buildings, with hotel buildings next occupying 7 percent of the space. In sales, Midtown East has the highest sale turnover among other neighborhoods in the city with $5.4 billion in sales volume in the last two years. For development, Midtown East is the 3rd most active neighborhood among other neighborhoods. It had 20.7 million square feet of commercial and multi-family construction under development in the last two years, which represents 33 percent of the neighborhood’s built space. There were 117 pre-foreclosure suit filed among other office buildings in the past 12 months.

The block

On this tax block, PincusCo has identified the owners of four of the six commercial properties representing 2,860,984 square feet of the 2,889,984 square feet. The largest owner is Metropolitan Transportation Authority, followed by Nys Common Retirement Fund and then Stawski Partners.
There are no active new building construction projects on this tax block.

The majority, or 99 percent of the 2.9 million square feet of built space are office buildings, with retail buildings next occupying 1 percent of the space.

The borrower

The PincusCo database currently indicates that Sovereign Partners owned at least five commercial properties in New York City with 2,338,754 square feet and a PincusCo-determined asset value of $1.7 billion. The portfolio has $500.1 million in debt, with top three lenders as MetLife, Rialto Management Group, and Jasper Lake LLC respectively. Within the portfolio, the bulk, or 55 percent of the 2,338,754 square feet of built space are office properties, with condo properties next occupying 44 percent of the space.

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