SK Development, Ironstate in Foreclosure Danger in Tribeca
Finance issues for SK Development and Ironstate are expanding beyond Murray Hill.
The developers behind the Reade Chambers mixed-use complex in Tribeca are facing foreclosure on a pair of storefronts attached to the luxury condo development, Crain’s reported. The retail berths, both part of a single development, are located at 71 Reade Street and 87 Chambers Street.
Delaware-based Wilmington Trust, acting on behalf of lender Natixis Real Estate Capital, alleges SK and Ironstate defaulted on a $7.5 million loan tied to the storefronts. Executives from the developers allegedly stopped making payments in November.
Wilmington sent a default notice to the owners regarding the loan the following month, but it was not cured, according to the lawsuit. The debt, issued in 2015, is now owed in full.
Wilmington is aiming to foreclose on the storefronts, which are back-to-back from one another. Ironstate did not respond to a request for comment, while SK declined to comment on the suit.
The 4,400-square-foot Chambers Street storefront is occupied by CityMD, which began a 15-year lease when the condo project opened in 2016. The 800-square-foot Reade Street spot has been occupied by at least two nail salons over the last decade.
The 17-unit Reade Chambers condo project launched sales in 2014, while construction was ongoing. It was developed by CBSK Ironstate, a partnership comprising SK Development, Ironstate Development and Charles Blaichman, the same partnership that developed the Jefferson condominium in the East Village.
The development partnership acquired the site for $22 million in 2012, records show. It was previously owned by developer Fishman Holdings of North America. In 2009, a building formerly housed on the site collapsed, flattening a car.
CBSK Ironstate is facing issues elsewhere. A borrower connected to the partners failed to pay off a $44 million balance on its loan by a March maturity date. The loan, backed by a 91-unit rental building at 200 East 39th Street in Murray Hill, was transferred to special servicing.
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