A
PF Properties, a Midtown office landlord that heavily invested in WeWork, has defaulted on a $155 million loan tied to the Club Row Building. This development hits close to home as APF's headquarters is located at 28 West 44th Street, just a block from Bryant Park. The default marks at least APF's fourth in recent years and its third on a building that lost WeWork as a tenant.

    WeWork occupied only two or three floors of the Club Row Building, which has a 14 percent vacancy rate due to its outdated design and location. The property is a dinosaur, built in 1920 with last renovations in 2014, making it difficult to lease. APF's other defaults are still working their way through the system, including one at 25 West 45th Street that has been entangled in foreclosure proceedings since May.

    However, there have been some positive developments for APF. The company managed to pay off a $173 million mortgage on 183 Madison after missing its maturity date and found an unknown buyer for 24 West 57th Street this month. Special servicing can provide opportunities for landlords to cut deals, but it's unclear whether servicers are still offering extensions given the current market conditions.

    The Club Row Building is in sorry shape, with only 63 percent occupancy as of September and revenue barely covering debt service. The transfer of its debt could potentially work out for APF's Kenneth Aschendorf and Berndt Perl, but it remains to be seen whether servicers will offer extensions on the loan.