Stellar Management and the Chetrit Group are experiencing financial challenges with their retail property on Columbus Avenue between West 97th and 100th streets. The loan associated with this outdoor shopping center has been transferred to special servicing, as reported by Crain’s, following missed payments over several months. Morningstar Credit Analytics confirmed the transfer.
The ownership did not provide a reason for the loan’s move to special servicing, which is the second time this has occurred. There have been no notable changes in business operations or consumer activity at the 270,000-square-foot mall, which includes Whole Foods and Target as anchor tenants.
Previously, in late 2023, the loan was placed into special servicing due to difficulties faced by retail tenants during the pandemic. The owners later secured a three-year extension on their $360 million mortgage.
This development adds to ongoing legal troubles for Meyer Chetrit of the Chetrit Group. Last month, he was indicted on criminal charges related to alleged harassment of elderly rent-regulated tenants in Chelsea over five years. He has pleaded not guilty. Additionally, Meyer Chetrit faces multiple civil lawsuits that include allegations of shielding assets to avoid paying a $132 million judgment.
Court documents and ratings agencies indicate that the Chetrits are allegedly in default on nearly $2 billion in loans, including $280 million with personal guarantees.
In related news, UDR—a Colorado-based real estate investment trust—and MetLife are looking to sell rental buildings at Columbus Square for up to $500 million. UDR acquired these properties from Stellar Management and Chetrit in 2012 for $635 million; however, that deal did not include the retail portion currently facing distress.
