(Bloomberg) -- A $150 million loan is up for sale on the land beneath the beleaguered Times Square Edition, a luxury hotel and retail property once valued at more than $2 billion that faces foreclosure.
The hotel and the underlying ground are owned separately by entities controlled by Maefield Development. The ground has $900 million in debt, including the $150 million junior loan that's up for sale, according to loan documents.
The mezzanine loan, with a 5.1% interest rate, is in the “fulcrum position” of the debt stack, according to a marketing presentation by Jones Lang LaSalle Inc. That means the lender could take control of the real estate if the borrower defaults on payments, according to people familiar with the matter.
Maefield Chief Executive Officer Mark Siffin didn't respond to requests for comment. Kevin Davis and Brett Rosenberg, who are listed as leading the sale for JLL, declined to comment.
The Edition, a ballyhooed property designed by Ian Schrager and Marriott International Inc., was struggling financially before Covid-19 walloped New York hotels. Construction delays and trouble filling the project's retail space led a group of lenders led by Natixis SA to file for foreclosure back in 2019. The property reopened to guests June 1 after being shuttered by the pandemic.
Marriott and Natixis declined to comment.
©2021 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
