Metro Loft Management Faces Pre-Foreclosure in Manhattan
Metro Loft Management, led by Nathan Berman, is navigating a challenging situation as it faces a pre-foreclosure filing for its 180 Water Street project in Manhattan. This development comes shortly after the site was designated for special servicing.
Details of the Pre-Foreclosure Filing
The filing, which occurred in the U.S. District Court for the Southern District of New York, pertains to a $265 million loan secured against the property. Metro Loft has defaulted on this loan, which was issued by Deutsche Bank (DB) and entered special servicing in December after the company failed to make the necessary payment due in November 2024.
Plans to Address Financial Obligations
Berman expressed confidence that Metro Loft can navigate the current financial difficulties by securing financing aimed at settling debts. Spokespeople from CW Asset Management and Deutsche Bank have yet to comment on the situation.
Background on 180 Water Street
The 180 Water Street property was acquired by Metro Loft in 2017 for $450 million. The building, originally a 29-story office tower, has been transformed into luxury apartments, currently comprising 580 market-rate residential units.
Market Conditions and Resident Demand
Despite the financial setbacks, the rental market in the Financial District remains robust. Current listings show studios priced at up to $4,495 per month and one-bedroom units reaching as high as $6,450 per month. Notably, the occupancy rate for the building was reported at 98% as of November.
Other Challenges for Metro Loft
In addition to the troubles at 180 Water Street, Metro Loft is also grappling with difficulties at another project located at 20 Broad Street. This site has encountered issues related to a $250 million loan that also entered special servicing in August.
Continuation of Development Efforts
Despite these challenges, Metro Loft remains active in the real estate market. The company is collaborating with Quantum Pacific on a major office-to-residential conversion project at 767 Third Avenue, indicating that it is continuing to pursue new opportunities in the sector.
Contact Information
For further insights, you can reach Isabelle Durso at id****@co****************.com.
