Luxury Building with $11,000+ Rents in Default: Report

the aire loan default

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A landlord that helped set all-time high rental records in the city reportedly can’t pay its mortgage and the bank is coming to collect, Bisnow reports.

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The Aire, the Lincoln Square-area rental building at 200 West 67th Street (on Amsterdam Avenue), is owned by A&R Kalimian Realty. The 43-story luxury building offers some unique amenities including indoor and outdoor children’s play areas, a private party deck, rehearsal rooms, and a courtyard. Leases currently range from $3,750 to $4,650 for a studio, $5,000 to $6,050 for a one-bedroom, $8,400 for a two-bed, and $11,900 for a three-bedroom, three-bath.

The 310-unit building was reportedly at risk of default last summer when the price tag for a three-bedroom, 2.5-bath was a bit higher ($12,400). At that time, the $195.8 million loan from J.P. Morgan was “transferred to special servicing despite a large occupancy recovery following a big dip during the height of the COVID-19 pandemic.”

A&R requested a short-term extension as it tried to meet its obligations, but Bisnow reports that the loan is now considered delinquent and non-performing. “In addition to the $225M senior mortgage, there is a $25M subordinate loan attached to the property, which A&R Kalimian opened in 2010 after purchasing the land along Amsterdam Avenue from the Red Cross in 2004 for $72.3M.”

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As most businesses did, the property suffered a financial hit during the peak of the COVID-19 pandemic with occupancy rates estimated to be close to 70%. However, March 2023 saw occupancy at 97% for its residential spaces, and its commercial options were fully leased as of this past summer.

No word was reported on exactly why A&R is failing to pay off its loan. Crains reported in June 2023 that the property was flagged as being at risk of default after its tax abatement expired and the annual property taxes rose from $1.1M in 2013 to $6.7M this year.


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