Juda Chetrit Refinances Away a Distressed Midtown Office Loan

Juda Chetrit went out and lined up fresh capital to get out from under a distressed office loan, closing a $88 million discounted payoff at 1384 Broadway with $55 million in new debt from Maxim Capital Group, according to Commercial Observer.

Why it matters

Chetrit’s organization controls the 204,034-square-foot tower at Broadway and West 38th Street in Midtown Manhattan, which is 80 percent leased. Instead of waiting out the special servicer, Chetrit brought in Iron Hound Management to arrange a smaller replacement loan and used it to retire the original CMBS debt at a discount. The move keeps the property out of foreclosure and hands Chetrit a lighter debt load on the building than it carried before.

The numbers

Maxim Capital’s $55 million loan funded the payoff of the $88 million loan, which had been securitized in the CD 2017-CD3 conduit deal. David Putro, head of commercial real estate analytics at Morningstar Credit Analytics, told Commercial Observer the loan stayed current on payments even after it moved into special servicing in December 2025, while Chetrit worked toward the discounted payoff that closed before the end of 2026. By our count, that is roughly ten months in special servicing before Chetrit cleared the debt. Iron Hound, Maxim Capital and Chetrit all declined to comment to Commercial Observer on terms.

What’s next

Chetrit plans to put part of the new loan toward lobby renovations and upgraded amenities at 1384 Broadway as part of a push to lease up the remaining 20 percent of the building. The American Developer will track any new leasing activity or a subsequent sale at the tower. More Midtown office financing activity is at the New York market hub.