Carlyle Group, Gotham Organization Buy Luxury UWS Tower In Debt Trouble
A luxury apartment building that had fallen into delinquency on its debt payments has sold, a happy ending for investors in its securitized loan.
The Aire, a 43-story, 310-unit building at 200 W. 67th St., has sold to a joint venture of the Carlyle Group and Gotham Organization, the New York Post reports. A&R Kalimian Realty, which developed the building in 2013, sold it for $265M, well above the balance of the outstanding loan.
A&R Kalimian had taken out a $225M senior loan with JPMorgan Chase in 2013, which then packaged it into a commercial mortgage-backed security. A&R Kalimian failed to pay off the loan when it matured on Nov. 1, and it was marked delinquent and nonperforming, according to information provided by Trepp in December.
The reported sale price allows the loan to be repaid in full. A deed transfer hasn't yet been posted in city property records, and the Post reported the building was "quietly sold." The most recent commentary from special servicer LNR Partners indicates that the sale was expected to close in the first quarter.
The loan was transferred to special servicing last summer after the rents no longer were enough to cover the debt payments on the building, Crain's New York Business reported. The financials of the building became challenged after a tax abatement expired.
While Gotham is a relative newcomer to acquiring existing buildings, according to the Post, The Carlyle Group has been an increasingly active buyer of New York City multifamily buildings in recent years.
