RCA in the commercial property press:

Litigation Pending on Silverstein's 575 Lex in Manhattan

The Real Deal Online reports: After a restructuring deal with its lenders fell through on 575 Lexington Avenue, Larry Silverstein’s Silverstein Properties is now facing significant foreclosure litigation on the high-quality Manhattan asset. The inability of the firm to service the property's debt comes as no surprise to Dan Fasulo, managing director at Real Capital Analytics, who remarked of the news that, “They paid a lot for this asset at the top of the market.”

To be exact, Silverstein paid $400 million for the property in 2006, with the help of two $162 million loans from Bank of America. The Real Deal reported that, “By April 2010, he informed lenders that he has $1.9 million in unpaid bills and began talks to restructure.” Silverstein officially defaulted on the loan in November 2010 and was filed suit against by LNR Property of Miami Beach in January.

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Posted by: Nina Turner

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