San Francisco-based Shorenstein Properties is 30 days delinquent on the $350M loan backed by its premier NYC asset, the 1.1M SF tower at 1407 Broadway.
The loan has been transferred to special servicing, Trepp reported. Trepp's report said the special servicer comments cited Shorenstein's "inability to pay monthly debt service."
"The transfer does not appear to be the relatively benign transfer that surrounds negotiations over an embedded extension option," Trepp's report said.
The $350M loan on the 48-story tower comes due in November, with an option to extend for another year. The loan was provided by Barclay's in 2019 after Shorenstein renovated the property.
Shorenstein paid $330M in 2015 to acquire the leasehold for 1407 Broadway, which is located between West 38th and West 39 Street in the Garment District.
The firm invested $62M to upgrade the tower, built in 1950, with a new lobby, elevators, common areas and retail storefronts offering fast casual dining and a deli.
According to a website for the building, "1407 Broadway is at the center of it all in New York's Time Square South submarket, serving as a hub of technology and creativity, the property is a dynamic, collaborative office and retail destination for market-leading firms."
The building offers flexible floor plates with expansion opportunities, 12-foot slab-to-slab ceilings, and "unmatched views," the website said.
Shorenstein owns a dozen Manhattan office and residential towers, including the Starrett Lehigh Building, 1180 Avenue of the Americas, 650 Madison Avenue and 14 Wall Street.
In September 2022, Shorenstein was unable to refinance its $400M loan on the Art Deco-style headquarters for the company formerly known as Twitter, a complex known as Market Square.
The company was given an extension by the lender-also Barclay's-and special servicer Wells Fargo until January 2023. The loan was repaid in full in time for the Jan. 9 deadline.
Market Square is made up of two side-by-side Art Deco buildings at 1355 Market Street that Shorenstein purchased in 2011 for $110M. The company spent $300M refurbishing the buildings into a headquarters for Twitter (now known as X).
The two buildings, built in 1937 and 1974, originally served as homes to the Western Furniture Exchange and the Merchandise Mart.