v3.26.1
Mortgage Notes Payable, Net (Tables)
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Schedule of Mortgage Notes Payable, Net
The Company’s mortgage notes payable, net as of June 30, 2026 and December 31, 2025 are as follows:
Outstanding Loan Amount
PortfolioEncumbered PropertiesJune 30,
2026		December 31,
2025		Effective Interest RateInterest RateContractual Maturity
(In thousands)(In thousands)
123 William Street1$140,000 $140,000 4.74 %FixedMar. 2027
400 E. 67th Street - Laurel Condominium / 200 Riverside Blvd. - ICON Garage (1) (3)
250,000 50,000 4.59 %FixedNov. 2025
8713 Fifth Avenue (1)
110,000 10,000 5.05 %FixedNov. 2028
196 Orchard Street151,000 51,000 3.91 %FixedAug. 2029
Mortgage notes payable, gross 5251,000 251,000 4.56 %
Less: deferred financing costs, net (2)
(1,092)(1,435)
Mortgage notes payable, net $249,908 $249,565 
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(1)These mortgage notes payable are currently either in an event of default, in breach of a debt covenant that may result in further restrictions as specified by the terms of the covenants or a cash sweep event of a debt covenant that may result in further restrictions as specified by the terms of the covenants. For more information please see “Debt Covenant Non-Compliance, Cash Sweep Events, Notices of Defaults and of Acceleration and Foreclosure Litigation” section below.
(2)Deferred financing costs represent commitment fees, legal fees, and other costs associated with obtaining commitments for financing. These costs are amortized to interest expense over the terms of the respective financing agreements using the effective interest method. Unamortized deferred financing costs are expensed when the associated debt is refinanced or repaid before maturity. Costs incurred in seeking financial transactions that do not close are expensed in the period in which it is determined that the financing will not close.
(3)The Company was informed by the lender pursuant to letters dated in November 2024, December 2024, January 2025 and June 2025 that the Company was in default under the loan agreement governing the loan secured by the non-recourse mortgage on the property for events that first occurred in the third and fourth quarters of 2023, specifically the Company’s failure to establish a cash management account for excess cash sweeps over monthly debt service requirements failure to cooperate with the lender to cure the alleged cash management procedure failures, and failure to pay outstanding amounts due under such loan agreement beginning in April 2025. The Company responded to notices of default sent in November 2024, December 2024 and January 2025, rejecting the assertions made by the lender, and has not received a response from the lender. The Company has not responded to the notice of default received in June 2025. On November 6, 2025, the Company received a notice of acceleration from the special servicer on behalf of the lender with respect to the loan secured by this property. On January 21, 2026, the lender initiated a foreclosure action, naming the Company’s subsidiary borrowers and the OP as defendants. On May 22, 2026, the lender filed a motion in the foreclosure action seeking the appointment of a receiver. On June 3, 2026, the lender, the Company’s subsidiary borrowers and OP entered into a settlement agreement that provides for the resolution of the foreclosure action, including consent to the appointment of a receiver and the entry of a judgment of foreclosure and sale, subject to the terms of the agreement. The lender filed the stipulation for appointment of a receiver on June 8, 2026, but it was opposed by the Board of Managers of 200 Riverside Blvd. at Trump Place Condominium (the “Condo Board”) because it asserts that it should be entitled to the rents from the property in satisfaction of common charges that it asserts are owed by the Company’s subsidiary borrower and that its right to payment of the common charges has priority over the rights of the lender. The Company retains control of the property as of June 30, 2026. For more information, please see “Debt Covenant Non-Compliance, Cash Sweep Events, Notices of Defaults and of Acceleration and Foreclosure Litigation” section below.
Schedule of Aggregate Principal Payments
The following table summarizes the scheduled aggregate principal payments subsequent to June 30, 2026:
(In thousands)Future Minimum Principal Payments
2026 (remainder) (1)
$50,000 
2027140,000 
202810,000 
202951,000 
2030— 
2031— 
Thereafter— 
Total$251,000 
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(1)On November 6, 2025, the Company was informed by the special servicer acting on behalf of the lender under the loan secured by the 400 E. 67th Street/200 Riverside Blvd. properties that the principal amount under the loan agreement had been accelerated and all amounts under such loan agreement were due and payable. The current outstanding principal amount of $50,000,000 is currently reflected in the above chart for the year 2026. The Company is evaluating its options with respect to this property and there can be no assurance as to the resolution of these matters with the lender. See also Note 5 – Mortgage Notes Payable, Net — Debt Covenant Non-Compliance, Cash Sweep Events, Notices of Defaults and of Acceleration and Foreclosure Litigation to our condensed consolidated financial statements in this Quarterly Report on Form 10-Q for further discussion.