Defaulted 1740 Bwy Office Loan Selling at Steep Discount

The $308 million commercial mortgage-back security (CMBS) back by 1740 Broadway has hit the sale market for the second time following the loan going into default more than a year ago by Blackstone Inc, and currently being marketed at roughly $150 million. The 26-story tower that spans the entire Broadway blockfront 55th and 56th Streets had been appraised for $605 million in 2014 when Blackstone purchased the asset and the mortgage was originated, an appraisal that in April 2023 lowered sharply to $175 million. The debt was sent to special servicer Midland Loan Services in March 2022, and although the private equity giant is no longer putting any money into the building, Midland hasn’t foreclosed on the tower.