A collection of challenges throughout its portfolio has put the way forward for American Strategic Funding Firm in critical doubt.
The agency, previously generally known as New York Metropolis REIT, is at risk of slipping into chapter 11 within the subsequent 12 months, Bisnow reported. The corporate raised “substantial doubt” over its capability to stay in enterprise, in accordance with filings with the Securities and Change Fee.
The most important problem going through the corporate is the $140 million debt backing 123 William Avenue, a Class B workplace constructing within the Monetary District. The mortgage, set to mature in March, backs a constructing ASIC has been making an attempt to promote for greater than two years with out discovering a taker. In the meantime, occupancy has slipped to 72 %.
The mortgage on the constructing is underwater, with ASIC valuing the property at $138 million, under the mortgage’s excellent stability. The corporate purchased the property in 2015 for $253 million.
Two years in the past, the corporate — led by Nicholas Schorsch Jr. — sold 9 Times Square for $63.5 million, a $100 million loss from what it paid for the property a decade earlier. ASIC additionally agreed to a foreclosures of 1140 Sixth Avenue as the worth of the Class A workplace constructing took a hit.
AR International is almost all proprietor of ASIC. In AR International’s 2025 annual report, launched a number of months in the past, it famous that “substantial doubt concerning the firm’s capability to proceed as a going concern has not been alleviated.” The corporate is staring down practically $250 million in debt.
ASIC posted a $16 million loss within the first half of the yr, producing lower than $15 million in income over the identical interval. The agency’s unrestricted money on the finish of the second quarter was lower than half of what it was a yr in the past, coming in at $2.4 million in June.
Including to the ache, ASIC is required to make $500,000 funds to AR International associates month-to-month, whatever the firm’s efficiency.
Shares in ASIC have tumbled by greater than 90 % since 2022. The corporate didn’t reply to a request for remark from the publication.
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9 Times Square under contract for $63.5m
American Realty Capital acquires 123 William St. for $253M
Midtown Class A office tower takes 90% valuation hit
