Special servicer LNR Partners has moved to foreclose on two Midtown office towers owned by The Moinian Group after the developer allegedly defaulted on a $310M loan.
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The loan is backed by a pair of office towers at 535-545 Fifth Ave., standing 36 and 14 stories tall. Court filings submitted Wednesday name Joseph Moinian as the guarantor and say the lender is seeking to seize not just the buildings but also personal property tied to the debt.
The loan matured on March 6, and LNR issued a default notice to Moinian four days later, court records show. It was transferred to special servicing on March 20, according to Morningstar Credit data.
“The Moinian Group is actively working on a refinancing solution and remains focused on the asset for the long-term,” a spokesperson for Moinian said in a statement to Bisnow.
Morgan Stanley originated the loan in February 2015 and later split it into three promissory notes. Wilmington Trust, acting as trustee for the bank, is listed as the plaintiff in court filings.
The property remains nearly fully leased, and as of June, Moinian was seeking to refinance the debt, according to Morningstar. The lender was reportedly still in negotiations while “simultaneously reserving all rights under the Loan Documents.
LNR declined to comment. The filing was first reported by PincusCo.
The filing comes a month after Moinian lost the Hilton Garden Inn in Midtown Manhattan at auction. The 34-story hotel, which was co-developed with Starwood Capital Group for $131M and opened in 2014, was tied to a $175M loan that went unpaid at maturity in March.
UPDATE, JULY 11, 12:05 P.M. ET: This story has been updated to include a statement from Moinian.
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