American Strategic Investment Co. discloses substantial doubt about continuing operations as its $140M loan exceeds asset value.
American Strategic Investment Co. (NYC) has flagged substantial doubt over its ability to remain solvent, citing a $249M debt burden. Its largest loan, $140M on 123 William St., matures in March but exceeds the property’s $137.7M Q2 valuation.
The REIT reported a $16M loss in the first half of 2024, while affiliates of its external manager collected $6M in fees. Shares have plummeted over 90% since 2022, and the company faces potential bankruptcy within 12 months.
Recent asset sales, including 9 Times Square at a $100M loss, and a consensual foreclosure on 1140 Sixth Ave. after defaulting on a $99M loan, have failed to stabilize its finances.