The Chetrits are quietly working out their problem loans.
The Chetrit Organization, led by Juda and Michael Chetrit, has extended its CMBS loan at 393-401 Fifth Avenue by 30 months.
The $95 million loan held by Rialto entered special servicing in 2024 for imminent maturity default, according to Trepp.
Robert Verrone and Will Forbes of Ironhound negotiated the deal.
The deal is unusual because the two eight-story office and retail buildings at 393-401 Fifth Avenue are vacant. American Eagle vacated its 200,000-square-foot lease, but the retailer is still making payments until the expiration of its lease in 2026.
The Chetrit Organization kicked in more capital to close the deal.
SL Green also holds a $30 million mezzanine position in the deal. Crain’s reported in 2020 that the firm was seeking to sell the debt, but SL Green opted to hold onto the loan and negotiate with the Chetrits.
“The Chetrit Organization appreciates both Rialto and SL Green for being creative and responsive in helping us work through these interesting times,” said Michael Chetrit in a statement.
Chetrit Organization was led by brothers Jacob and Juda Chetrit. Jacob Chetrit died earlier this year, and his son Michael Chetrit has taken on a larger role.
The organization often works with the better-known Chetrit Group led by Joseph and Meyer Chetrit.
Chetrit Organization recently worked out another deal with Rialto, a servicer known for playing hardball with borrowers. Chetrit negotiated a three-year loan extension with Rialto on two Soho properties at 459 Broadway and 427 Broadway.
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