New York & Tri-State + Midtown New York + Distressed Assets | August 24, 2023

Klosed Properties Purchases $26M Note on Elie Schwartz’s Midtown Office Building

Klosed Properties and Namdar Realty Corp. have acquired a $26.2 million bank note for a 15-story midtown office building located at 20 East 46th Street in New York. The note was purchased from East West Bank, with the original balance being $30 million.

The building, which includes ground floor retail space, spans 94,461 square feet and underwent a complete renovation in 2017. Elie Schwartz’s Nightingale Properties obtained the loan in 2016 to purchase the leasehold for the 15-story building. Nightingale defaulted earlier this year amid a scandal involving the misappropriation of funds from small-time investors on the crowdfunding platform CrowdStreet.

At the time of purchase, the loan was in default, and the outstanding balance had been reduced to $26.2 million. Rosewood Realty Group’s Aaron Jungreis, Ben Khakshoor and Alex Fuchs represented Klosed Properties, Namdar Realty Corp. and East West Bank.

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About Emily Fu

Emily Fu is Content Director of Connect Commercial Real Estate, where she covers the east coast markets, including New York, Boston & New England, and DC & Mid-Atlantic markets. She produces daily news stories as well as longer-form content, ranging from Q&As to thought-leadership pieces. She also writes feature stories for Connect Money. With previous stints at Reuters, Seeking Alpha, and Commercial Observer, Emily has covered the finance side of the commercial real estate industry, technology, media, telecom (TMT), and fashion. She attended the Columbia Graduate School of Journalism and currently resides in Manhattan.

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