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The race to take over the leasehold for distressed 2 Herald Square is nearing its conclusion, and Paramount Group is in the lead.
Sitt Asset Management owns the leasehold, but the property has failed to refinance its CMBS loan due to ongoing litigation among the Sitt brothers. Court records showed the property was losing $1.7M/month, The Real Deal reports.
Paramount Group already holds $30M of preferred equity in the building, and its bid to take over the 51.75% ownership of the leasehold that Sitt Asset Management possesses is reportedly in competition with offers from JEMB Realty and Jamestown Properties. CBRE is representing Sitt in the sale, after which Sitt is expected to retain some stake.
Previous reports indicated JEMB had offered $350M for the 354K SF office building with tenants such as WeWork, but no agreement was finalized.
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