Thor Equities pays $6.6M for SoHo retail it bought in 2008 for $12M

Joseph Sitt-led Thor Equities through the entity Thor 440 Broadway LLC paid $6.6 million through a real estate owned purchase to bondholders of the Midland Loan Services managed trust called Series 2013-C7, for the retail building (K2) at 440 Broadway in SoHo, Manhattan. The expected use is cash flowing.

Thor Equities bought this property in January 2008 for $12 million, then during the middle of the run-up of retail rents, in 2013, borrowed $13.25 million. Over the next decade retail rents continued rising, then started a steep decline, driven down by online sales, Covid and other changes. Thor lost the building in a foreclosure, with the lender taking it back in August 2024. Less than two years later, Thor repurchased the property at a 45 percent discount.
The deal closed on April 6, 2026 and was recorded on April 9, 2026. The property has 5,771 square feet of built space and 9,176 square feet of additional air rights for a total buildable of 14,945 square feet according to a PincusCo analysis of city data. The sale price per built square foot is $1,144 and the price per buildable square foot is $442 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 signatory for Series 2013-C7 and Midland Loan Services was Wm. Dugger Schwartz . The contract date was March 26, 2026.

Zach Redding and Dylan Kane of Colliers brokered the transaction.

Prior sales, articles and revenue

Prior to this transaction, PincusCo has records that the buyer Thor Equities purchased two properties in two transactions for a total of $114.5 million and sold 21 properties in 10 transactions for a total of $545.6 million over the past 24 months.
The 5,771-square-foot property generated revenue of $2 million or $347 per square foot, according to the most recent income and expense figures.

The property

The retail building in SoHo has 5,771 square feet of built space and 9,176 square feet of additional air rights for a total buildable of 14,945 square feet according to a PincusCo analysis of city data. The parcel has frontage of 30 feet and is 98 feet deep with a total lot size of 2,989 square feet. The property is in the SoHo-Cast Iron Historic District. The city-designated market value for the property in 2022 is $10.7 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 $250 in OATH penalties in the last year.

Development

For the tax lot building, it received its initial certificate of occupancy on August 28, 2014. 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 five of the 11 commercial properties representing 128,270 square feet of the 230,963 square feet. The largest owner is Spear Street Capital, followed by Tokyo Trust Capital and then Midland Loan Services.
There are no active new building construction projects on this tax block.

The majority, or 67 percent of the 230,963 square feet of built space are office buildings, with retail buildings next occupying 21 percent of the space.

The seller

The PincusCo database currently indicates that Midland Loan Services owned at least two commercial properties in New York City with 235,697 square feet and a city-determined market value of $43.7 million. (Market value is typically about 50% of actual value.) Within the portfolio, the bulk, or 98 percent of the 235,697 square feet of built space are office properties, with retail properties next occupying 2 percent of the space. The bulk, or 98 percent of the built space, is in Brooklyn, with Manhattan next at 2 percent of the space.
The PincusCo database currently indicates that Series 2013-C7 owned at least one commercial property in New York City with 5,771 square feet and a city-determined market value of $8.2 million. (Market value is typically about 50% of actual value.) The portfolio consists of at least a single retail property. It is located in Manhattan.

The buyer

The PincusCo database currently indicates that Thor Equities owned at least 23 commercial properties with 346 residential units in New York City with 722,507 square feet and a city-determined market value of $209.5 million. (Market value is typically about 50% of actual value.) The portfolio has $378 million in debt, with top three lenders as MetLife, Argentic Investment Management, and Prime Finance respectively. Within the portfolio, the bulk, or 55 percent of the 722,507 square feet of built space are elevator properties, with office properties next occupying 17 percent of the space. The bulk, or 73 percent of the built space, is in Manhattan, with Brooklyn next at 27 percent of the space.

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