(Google Maps)
The rich may have officially eaten themselves. The Aire, the embattled West 67th Street luxury building that is famous for its post-COVID skyrocket rents and more recent default on its nearly $200 million mortgage, has hit bottom.
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The family-owned property reportedly defaulted on its $198 million loan from J.P. Morgan last month following numerous publications discussing the likelihood of delinquency last summer. Despite pleas for a short-term extension, 200 West 67th Street is officially for sale, according to Crains New York Business.
A&R Kalimian Realty purchased the Lincoln Square lot from the Red Cross in 2004 for $72.3 million and opened its 42-story tower in 2010. Low occupancy before the COVID-19 pandemic forced the landlord to offer concessions to move the needle beyond a 65% occupancy rate. It seems this tactic may have worked.
Residential rentals in the 310-unit building were at 99% at the end of 2022 and at 97% in March 2023. Its commercial spaces were fully leased this past summer. Its current inventory shows 14 units in stock, with price tags ranging from $3,850 for a 398 sq. ft studio to $13,000 for a 1,540 sq. ft. three bedroom. One-bedroom units start at $5,000 and the one available two-bedroom is asking $7,495.
However, Crains reported that rental income accounts for 87% of borrowing costs and does not “generate enough cash to cover rising property tax costs and other expenses.” Notably, The Aire enjoyed a tax abatement from 2004 to 2023 when the tax bill rose from $1.1 million to $6.6 million.
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The demise of this Kalimian venture is just the latest bit of publicized family drama. A feud has reportedly been ongoing amongst various family members since patriarch Elias Kalimian passed away in 2020. A 2022 defamation lawsuit filed by managing principal Albert Kalimian against his nephew Justin Amirian was withdrawn in February 2023. An active case for alleged self-dealing at eleven Manhattan apartment buildings was commenced by some members of the Amirian clan against Kalimian and his sisters in October 2023.
A&R Kalimian owns ten commercial and multifamily properties in Manhattan, according to Crains.
GOOD!!!! I’m glad “luxery” rentals are failing! The city needs affordable housing!
Do we get the red cross back?
They built that building just north enough that it cut off the view to the river rather than staying in building lines of other buildings on 67th street.