A prominent downtown storefront has gone to foreclosure after owners Crown Acquisitions and Morgan Stanley defaulted on its $64 million mortgage.
All 16,000 square feet of the retail space at 170 Broadway has been occupied since 2015 by the Gap, which has had a contentious relationship with its landlords since they forced the big national chain to keep paying rent after the store was compelled to close temporarily in March 2020. Gap sued to terminate its lease but a judge ordered the tenant to pay up.
The Gap’s lease at the corner of Maiden Lane continues until 2030, and the California-based company didn’t immediately respond to an email asking if it would consider renewing should a new property owner emerge in foreclosure proceedings. The case was filed last week by Deutsche Bank, which represents investors in the mortgage that came due on April 6.
The Gap’s lease at the corner of Maiden Lane continues until 2030, and the California-based company didn’t immediately respond to an email asking if it would consider renewing should a new property owner emerge in foreclosure proceedings. The case was filed last week by Deutsche Bank, which represents investors in the mortgage that came due on April 6.
170 Broadway is a small part of Crown’s vast real estate holdings. The firm, controlled by the Chera family, owns or manages 10 million square feet of space, according to its website. Its portfolio includes the office building at 650 Madison Ave. and the luxury apartment and retail building at 645 Fifth Ave. called Olympic Tower.
Crown also co-owns the retail space at the St. Regis Hotel with Vornado Realty Trust, which has a 45% stake. In 2023 the two heavyweights defaulted on the $450 million mortgage for the property that houses Harry Winston and other luxury shops. Crown and Vornado agreed to pay down a portion of the mortgage, and lenders wrote a new $355 million loan that comes due next month, according to disclosures from Vornado.
Crown didn’t respond to a message seeking comment on the foreclosure action, and Morgan Stanley had no immediate comment.
