Fitch Says Silverstein in “Imminent Default” on $325M Loan Balance
- Mar 12, 2010
March 12, 2010
By Allison Landa, News Editor
A $325 million loan balance on developer Larry Silverstein’s property, 575 Lexington Avenue in Manhattan, was transferred to special servicing earlier this week, which Fitch Ratings says is due to imminent default.
Also known as the SkyGrid Building, 575 Lexington rises 35 stories and comprises 611,686 square feet of Class A office space. It was built in 1958. A brochure from Silverstein Properties reads: “Sleek and modern, the building provides a first-class environment for office tenants large and small. … As a quintessential top-tier New York City office building, 575 Lexington is perfectly suited to meet the needs of many types of companies in the competitive midtown marketplace.”
The building has a parking garage, health club, and retail space and is close to Rockefeller Center and the Museum of Modern Art. Major tenants include Cornell University, Development Corp. for Israel, and Palestrini Post Production, as well as Cameraland, New York Sports Club, and Staples.
Silverstein and real estate partner Calstrs bought the building for $400 million.
Fitch did not return a request for comment.