Thor Equities Defaults On Loan Payments At SoHo Retail Location
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A special servicer has taken over Thor Equities' loan on a building in SoHo, more evidence that landlords are feeling the squeeze in the city’s challenged retail environment.
The Joseph Sitt-led company defaulted on a $37M loan on the property at 115 Mercer St., The Wall Street Journal reports.
Kooples rents the building, and has been negotiating with Thor over the terms of the lease.
As well as the Mercer Street location, a mortgage Thor holds on an Upper East Side property went into special servicing last year, according to the newspaper.
Across Manhattan, retailers, landlords and developers have been dealing with a challenging environment for retail, as shopping habits increasingly shift online.
Late last month, Tommy Hilfiger announced it is closing its flagship store on Fifth Avenue.
Polo Ralph Lauren shut its flagship there in April 2017, amid falling sales and stagnant profits. Lord & Taylor closed earlier this year, with WeWork buying the building.
Landlords have been contending with widespread vacancies across the city, with SoHo’s availability at 25%, according to Cushman & Wakefiled data cited by the WSJ.
Thor has been shedding assets, but still owns around $5B worth of Manhattan properties. It had been planning an office and retail project in Red Hook, but has pivoted to last-mile warehouse development for the site.