Clarion Partners and Alchemy Properties are facing the threat of foreclosure on their office building located at 209-211 East 43rd Street, just a block from Grand Central Terminal in Manhattan. The 24-story property covers 211,000 square feet.
According to Crain’s, a Miami-based plaintiff filed a lawsuit last week in Manhattan Supreme Court against an LLC linked to the ownership venture. The suit alleges default on a $57 million loan. While individuals and owners are not named directly in the filing, principals for both Clarion and Alchemy signed documents for an original $65 million loan from Signature Bank in 2015. This loan was later amended to $57 million in 2022 before being transferred to the current plaintiff.
The plaintiff claims that ownership was notified of its default in April, with an outstanding debt of $56.3 million plus interest.
A spokesperson for the ownership group stated: “We remain committed to achieving a positive and timely outcome for all parties involved through the successful recapitalization of the property.”
Alchemy and ABR Partners, together with Clarion, purchased the leasehold on the Midtown East building for $99 million in 2015. Previously, Meadow Partners had acquired it for $61 million two years earlier and invested $7 million into improvements while revamping much of the tenant list.
Current tenants include the missions of Bosnia, Mauritius, and Costa Rica, as well as Midtown Dental Services and physiatrist Douglas Schwartz. Izakaya Futago, a Japanese restaurant, occupies space on the ground floor.
Office space asking rents range between $35 and $144 per square foot according to CoStar data. Approximately 30,000 square feet are available across seven upper floors based on information from Avison Young.
