D
eveloper Jacob Chetrit's organization may lose two downtown properties due to foreclosure. LoanCore Capital Credit has sued Chetrit for defaulting on nearly $200 million in loans tied to his buildings at 1 Whitehall Street and 428 Broadway. The asset management firm is seeking the forced sale of these properties to pay off the debt, as stated in two separate lawsuits filed on Monday.

    Chetrit acquired the 21-story office building at 1 Whitehall in 2019 for $181.5 million, taking out a $148.6 million mortgage. However, he stopped making loan payments in July 2023, according to the lawsuit. At 428 Broadway, Chetrit took out a $60 million mortgage from LoanCore in 2020, which was reduced to $50 million the following year. Despite this, Chetrit failed to repay the loan and received a default notice in August 2023.

    The Soho building at 428 Broadway is near two other troubled properties owned by Jacob Chetrit, including 427 Broadway and 459 Broadway, where a $77 million loan was transferred to special servicing due to missed debt payments. In contrast, about 60% of the office space at 1 Whitehall Street is occupied, with nonprofit LifeSpire as its largest tenant relocating. Meanwhile, CoStar data indicates that the entire building at 428 Broadway appears to be vacant.