Clarion Partners and Alchemy Properties are facing possible foreclosure on their office building at 209-211 East 43rd Street, located near Grand Central Terminal in Manhattan. The 24-story property, which spans 211,000 square feet, is only a block from the major transit hub.
A lawsuit was filed last week in Manhattan Supreme Court by a Miami-based plaintiff against a limited liability company that appears to be connected to the venture between Clarion and Alchemy. The suit alleges that the owners defaulted on a $57 million loan. While individuals and owners are not named directly in the lawsuit, principals from both companies signed documents for a $65 million loan from Signature Bank in 2015. This loan was amended to $57 million in 2022 and later transferred to the current plaintiff.
The plaintiff claims that ownership was notified of its default in April, with an outstanding balance of $56.3 million plus interest.
A spokesperson for the ownership stated, “committed to achieving a positive and timely outcome for all parties involved through the successful recapitalization of the property.”
Alchemy and ABR Partners, together with Clarion, acquired the leasehold on the Midtown East building in 2015 for $99 million. This followed Meadow Partners’ purchase of the property for $61 million two years earlier; Meadow had invested $7 million in improvements and restructured much of the tenant roster during its ownership.
Current tenants include diplomatic missions from Bosnia, Mauritius, and Costa Rica, Midtown Dental Services, physiatrist Douglas Schwartz, and Izakaya Futago restaurant on the ground floor. Office space rents in the building range from $35 to $144 per square foot. About 30,000 square feet are available across seven upper floors.
