Lux Building with $13,000 Rental Defaults, is Now for Sale

the aire loan default

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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 A 2022 defamation lawsuit filed by managing principal Albert Kalimian against his nephew Justin Amirian was withdrawn in February 2023.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.


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