An entity associated with New York City-based private real estate investment firm Sagehall has purchased the Chetrit Organization's 428 Broadway office building for $47 million, according to city records filed on Thursday. Jason Levine, Managing Director at Sagehall, signed on behalf of the buyer entity, 428 Broadway Owner.
The seller entities formed a partnership between the Chetrit Organization and investor American Industrial. For the Chetrit Organization, Michael Chetrit signed on behalf of two holding companies. Roget Lerner and Jean-Marc Donics are the co-founders of American Industrial, with the latter signing on behalf of the AI SoHo Investors entity. The sale was disclosed on 3 September 2026.
The Chetrit Group acquired the six-storey property in Manhattan's SoHo neighbourhood in 2005 for $22.5 million. Following the split of the family business in the mid-2000s, the property transferred to the Chetrit Organization. The building encountered difficulties after its main tenant, WeWork, which occupied four floors, filed for bankruptcy in 2023. The co-working company's departure from 428 Broadway led to a 96 percent vacancy rate. The current occupancy rate is not known.
Lender LoanCore Capital Credit initiated foreclosure proceedings in 2024 against 428 Broadway, as well as 1 Whitehall Street in the Financial District, alleging default on approximately $200 million in loans. The latter office building was sold earlier this year for $105 million to Nathan Berman's Metro Loft and Idan Ofer's Quantum Pacific Group for a planned residential conversion.
The mortgage debt for 428 Broadway appears to have passed from LoanCore to an entity owned by the Chetrit Organization and Donics, C&AI Soho Holding, in late 2025. This entity acquired the property in a recent foreclosure auction, enabling the partners to make the sale. Donics declined to comment on the recent sale. Spokespersons for Sagehall and Chetrit did not immediately respond to requests for comment.
The Chetrit Organization's former headquarters at 404 Fifth Avenue was recently sold back to its lenders with a $75 million debt load, as reported by Crain's New York. The Chetrit Group, its counterpart in the family business, has faced difficulties and legal issues over the past year, indicating its dissolution in court filings.
