Citi takes $69.9M mortgage on 16 West 47th in Diamond District

Citi Real Estate Funding Inc. now holds a $69.9 million consolidated mortgage on 16 West 47th Street in the Diamond District, after buying the old lender’s debt in August and having the borrower change on paper, according to city property records recorded Sept. 14.

Why it matters

Crain’s New York reported on Oct. 9 that a feud involving a fake diamond and casino debt surrounds a $69 million mortgage in the Diamond District. We could not verify any court filing tied to this property or its owners, so this story covers only what the recorded documents show. The money-holder in those documents is Citi, which stepped into the loan before it was resized.

The sequence matters. New York Community Bank, now Flagstar Bank, assigned its mortgage to Citi Real Estate Funding in a document dated Aug. 10. A deed dated Aug. 17 then moved the lot from 20 West 47 Street Associates LLC to 20 West 47 Street Associates II LLC, with no price stated. On Sept. 2 the new entity signed a $69.9 million agreement and assignment of leases and rents with Citi, plus a separate $1,692,295.02 mortgage. That fits a consolidation of the old debt plus new money, though we did not read the loan terms.

Who stands behind the LLCs is partly visible. A 2012 Signature Bank mortgage on the same lot lists the borrower, 20 West 47 Street Associates LLC, in care of Alishaev Brothers. We did not confirm that the family remains the controlling owner today.

The numbers

The $69.9 million is $5.35 million below the $75.25 million consolidation New York Community Bank recorded in May 2019. The chain of recorded agreements on this lot runs $30 million in 2012, $60 million in 2013, $75.25 million in 2019 and $69.9 million now. A smaller number on a lot with a change of lender can mean a paydown, a lower appraisal, or a loan bought at a discount; the record does not say which. For the wider market picture, see our New York coverage.

The 2012 mortgage was $10.1 million, so the debt on this block of West 47th Street has grown nearly sevenfold in 14 years.

What’s next

Watch the Manhattan county clerk for a lis pendens or a satisfaction against 16 West 47th Street, either of which would show whether the dispute reported by Crain’s has reached the property. We will also check for a UCC filing on the owner’s equity, which would show whether the lender has taken a pledge above the mortgage.