J
oseph and Meyer Chetrit, owners of the notorious Carter Hotel in Times Square, are facing financial woes. They allegedly owe Mack Real Estate Credit Strategies $223 million in mezzanine loans secured on the property, which has been dubbed "America's filthiest hotel." The lenders are seeking a "quick payoff" by February 20, or they will move to foreclose on the hotel.

    The Chetrits bought the 700-room hotel for $192 million in 2015 with plans to renovate it. However, work stalled, leaving the building in disrepair and accumulating over $420,000 in state and city fines. The hotel's dilapidated condition has long been a source of frustration for area businesses and civic leaders.

    The Carter Hotel, located at 250 W. 43rd St., stands between the Lyric Theater and the Westin Hotel. Its reputation as a haven for crime and squalor dates back decades, with four murders occurring on the premises. The hotel has been cited multiple times for its unsanitary conditions, including roaches, rats, black mold, and stains of unknown origin.

    The Chetrit Group, which owns thousands of apartments across the US, is facing financial difficulties on several fronts. In addition to the potential foreclosure on the Carter Hotel, they are also embroiled in legal battles over two downtown office towers and a residential development site.