Kushner Companies No Longer Past Due on Times Square Loan

Charles Kushner and 229 West 43rd Street (Getty, Google Maps)

Kushner Companies is no longer behind on loan repayments related to its distressed commercial building in Times Square.

The development group is now in a grace period on a $ 285 million CMBS loan secured by the 248,457 square foot commercial condo located at 229 West 43rd Street. The loan was over 90 days past due.

The loan came out of delinquency in October when reserves held by the lender were used to make unpaid interest payments from April through September, according to Fitch Ratings. But it remains under special revision.

A recent appraisal reduced the property’s value from 80 percent, from $ 470 million in 2017 to $ 92.5 million, according to Trepp.

The assessment came after two of its major tenants – Gulliver’s Gate, which filed for bankruptcy in 2019, and National Geographic – released. That brought the occupancy rate down to 52% from 95% last year, according to Trepp.

Kushner’s commercial property occupies four floors of an 18-story office building where the New York Times was headquartered until 2007. The company bought the property in 2015 for $ 296 million from Lev Leviev’s Africa-Israel.

The company quickly secured a $ 370 million refinancing, including a $ 70 million mezzanine loan from Paramount Group, a $ 15 million mezzanine loan from SL Green and a $ 285 million CMBS loan from Deutsche Bank.

But the property was in trouble even before the pandemic. In 2017, the famous chef Guy Fieri Guy American Cuisine closed with 10 years remaining on its lease. Subsequent plans to open a dining room run by Todd English collapsed as the developer and chef became entangled in litigation.

Kushner Companies did not immediately return a request for comment.

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