Lender Grabs Troubled SoHo Building From Madison Capital, Vornado: The N.Y. Deal Sheet
Less than two years after Madison Capital and Vornado Realty Trust put their boutique office and retail development they dubbed the Gateway to SoHo on the market for $100M, they sold the building for half that much.
Capstone Equities, which had acquired the building's mortgage and filed to foreclose last year, acquired 606 Broadway, which has an alternative address of 140 Crosby St., for roughly $50M, according to a deed posted to the city register Tuesday.
The deed shows the full sale price of $49.8M, while the city register database reflects a transaction value of $51.4M.
Madison Capital and Vornado each owned 50% of the six-story building, which they developed in 2019. French bank Société Générale provided a $75M mortgage to the owners that same year, but Madison and Vornado defaulted on the debt when it hit maturity in September 2024.
The owners had been trying to sell the building, hiring an Avison Young team to market it that June with an asking price north of $100M.
The 36K SF property was 25% occupied at the end of 2025, according to Vornado's annual report, which disclosed that the debt was in maturity default.
Capstone's foreclosure lawsuit was withdrawn May 15, a day before the sale closed, according to court records. In March, Capstone had split the property's remaining $68.4M mortgage into three loans of $34M, $21.6M and $12.7M.
To finance its purchase, Capstone secured a $5.5M gap loan with Chicago-based lender Prime Finance, which also assumed the $34M note and consolidated it into a $39.6M mortgage, according to documents in the city register.
Capstone and Madison Capital didn’t immediately respond to a request for comment. Vornado declined to comment.
TOP SALES
AV Management acquired an eight-story SoHo residential and school site for $43.3M, Crain’s New York Business reported. The seller was Geraldine Ferraro’s widower, John Zaccaro. Zaccaro previously redeveloped the building at 73-75 Sullivan St. to a Montessori School and 11 luxury apartments. AV Management financed the purchase with a $21.7M loan from Citizens Bank.
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The Heller Organization sold the 15-story, 90-unit apartment building at 698 West End Ave. to Benchmark Real Estate Group for $42M, Commercial Observer reported. Heller had owned the 101-year-old property since 1998.
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Wagner College acquired St. John’s University's 10-building Staten Island campus for $30M, PincusCo reported. The Dormitory Authority of New York State approved $35M in funding to Wagner in April, paving the way for the acquisition of the campus, which the Queens-based Catholic school closed in 2024. JLL’s David Carlos represented the buyer when he was working for Savills, while Savills’ Arthur Mirante, Michael Bertini and Mark Todrys represented the seller.
TOP FINANCING
RXR Realty and OneIM landed two construction loans totaling $420M for 61 Broadway from Apollo Global Management, PincusCo reported. Apollo provided a $315.5M senior loan and a $104.5M mezzanine loan. The debt replaces a prior $240M loan from Aareal Capital, debt on which RXR defaulted in 2023. The Scott Rechler-led firm had agreed to hand the keys over to Aareal but changed course to convert the tower. RXR filed residential conversion plans for the 33-story, 790K SF office building earlier this year.
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Cain International and Alchemy-ABR refinanced their 30-story tower at 125 W. 57th St. for $321M, according to a release. JPMorgan Chase provided a senior loan, while Hudson Bay Capital originated mezzanine debt in a deal that would value the 260K SF property, which is 53% occupied, at $600M once it hits certain leasing milestones, Crain’s New York Business reported. The duo acquired the property in 2021 for $130M. Walker & Dunlop’s Adam Schwartz, Aaron Appel, Jonathan Schwartz, Keith Kurland, Sean Reimer, Dustin Stolly and Sean Bastian brokered the deal for ownership.
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Affinius Capital provided an $88M acquisition loan to DelShah Capital, Realm and A.M. Properties for the office portion of CitySpire, a 70-story office and condo tower at 156 W. 56th St., Commercial Observer reported. The buyers went under contract to buy the 39-year-old property from longtime owners Tishman Speyer and GIC in February. The tower is 98% occupied by tenants including Caleres and Windels Marx Lane & Mittendorf LLP. Newmark’s Jordan Roeschlaub, Christopher Kramer, Nick Scribani and Tim Polglase arranged the financing.
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Dune Real Estate Partners and Turnbridge Equities refinanced the Bronx Logistics Center at 980 E. 149th St. for $379.1M, PincusCo reported. Strategic Value Partners provided the new financing, which replaces a $381.2M loan from KKR. The loan covers three industrial buildings on the site, spanning 986K SF. The refinancing comes after a deal to sell the property to New York City fell through amid a corruption inquiry into former Mayor Eric Adams' administration.
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Corem Property Group provided an affiliate entity, Corem Charlotta AB, with a $78.5M mortgage to refinance a 179K SF Penn Plaza office at 1241 Broadway, PincusCo reported. The sum replaces a $90M loan from Deutsche Pfandbriefbank.
TOP LEASES
Willkie Farr & Gallagher signed a 53K SF expansion at CommonWealth Partners’ 787 Seventh Ave., according to a first-quarter Savills report. The lease grows the law firm’s space to 368K SF, Commercial Observer reported. The tenant has been in the building for more than 25 years and signed a 20-year renewal in 2024. Newmark’s Neil Goldmacher and Brian Goldman represented the tenant.
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Marcus & Millichap renewed and expanded to 41K SF at AmTrustRE's 260 Madison Ave., adding 5K SF to its space, which now spans the full ninth and partial 10th floor of the 22-story, 570K SF tower. AmTrustRE acquired the building in December and expects to complete its revamp of the exterior and lobby, plus add a second-floor amenity space, in 2027. CBRE’s Evan Fiddle represented the tenant, and AmtrustRE’s Samuel Salberghe represented the landlord in-house, alongside CBRE’s Paul Amirich, Neil King, Meghan Allen and Kelly Tipton.
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Versant Media Group expanded by 86K SF at Columbia Property Trust's 229 W. 43rd St., bringing its total footprint in the building to 249K SF, according to a release. The deal gives Versant three new floors for a total of six and extends its lease by 18 years in the former New York Times Building, which is now 96% leased. The landlord had in-house representation in the deal, while CBRE represented the tenant.
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Kirkland & Ellis expanded by 52K SF at 900 Third Ave., according to a law firm leasing report from Savills. The deal brings the firm's total space to 257K SF, Commercial Observer reported. Kirkland, the largest law firm in the U.S., also has 520K SF at BXP’s 601 Lexington Ave. in a deal that runs until 2039. The Third Avenue tower is owned by Elecor Properties, the name chosen by Rithm Capital for the properties it acquired when it bought Paramount Group. CBRE’s Ken Rapp and Andrew Sussman represented the tenant. A Cushman & Wakefield team led by John Cefaly represents the landlord.
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Marshalls signed a 31K SF retail lease at Liberty Bklyn, an eight-story, 1.3M SF office, retail and industrial property at 850 Third Ave. in Sunset Park, Commercial Observer reported. The deal brings the retail component of the Madison Capital- and Salmar Properties-owned property to fully leased.
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Gersh Autism Academy signed a 21K SF sublease at 452 College Ave. in the Bronx, Commercial Observer reported. Gersh signed the deal with Seton Education Partners, the parent company of the previous tenant, Brilla Schools. Brilla previously occupied the campus, which includes 500 Courtlandt Ave., but has consolidated its operations from both buildings to a new space at 420 E. 145th St.
