The Black Hole of Times Square: Chetrit Group’s Troubles Continue
The Chetrits’ Financial Woes
The owners of the infamous Carter Hotel, Joseph and Meyer Chetrit, are facing a new challenge as they are allegedly hundreds of millions of dollars behind on loans linked to the property. According to reports, Mack Real Estate Credit Strategies has sued the brothers for failing to pay $223 million in mezzanine loans secured on the property.
The Hotel’s Troubled History
The Carter Hotel, located at 250 W. 43rd St., has a long history of neglect and disrepair. The 700-room hotel, which opened in 1930, has been cited multiple times as "America’s filthiest hotel." It has also been the site of four murders, including the 2007 death of aspiring model Kristine Yitref, whose body was found strangled, beaten, and naked under a bed.
The Current Situation
The Chetrits purchased the hotel in 2015 for $192 million, but their plans for a major renovation stalled, leaving the building in a state of disrepair. The hotel has been the subject of numerous complaints and fines from state and city authorities, with outstanding debts totaling over $420,000.
The Consequences of Non-Payment
If the Chetrits are unable to pay the outstanding debt or negotiate new terms by a February 20th court hearing, Mack could move to foreclose on the hotel. This would be a major blow to the brothers, who are already facing financial difficulties and legal battles on several other fronts.
The Company’s Dilemma
The Chetrit Group, which owns thousands of apartments around the US, has a reputation for buying and selling properties quickly. However, their current financial woes have put them in a difficult position. The company is also embroiled in legal battles on several other fronts, including possible foreclosure on two downtown office towers and a residential development site.
Conclusion
The Chetrits’ struggles with the Carter Hotel are just the latest in a long line of troubles for the brothers. Their failure to pay the outstanding debt could have serious consequences, including the potential loss of the hotel. As the situation continues to unfold, it remains to be seen what the future holds for the infamous Carter Hotel and its embattled owners.
FAQs
Q: What is the current state of the Carter Hotel?
A: The hotel is currently in a state of disrepair, with numerous complaints and fines from state and city authorities.
Q: How much do the Chetrits owe in outstanding debt?
A: The Chetrits owe over $420,000 in state and city fines, as well as $223 million in mezzanine loans to Mack Real Estate Credit Strategies.
Q: What are the potential consequences of non-payment?
A: If the Chetrits are unable to pay the outstanding debt, Mack could move to foreclose on the hotel, which would be a major blow to the brothers.
Q: What is the history of the Carter Hotel?
A: The hotel has a long history of neglect and disrepair, including being cited multiple times as "America’s filthiest hotel" and being the site of four murders.
