The retailer Gap is refusing to pay rent for its store in New York City at 160 Broadway, putting the retail condominium it pays rent to under pressure. The Real Deal reports that the landlord is being pressured at the same time by its CMBS lender, putting it no mood to entertain Gap’s demand for a refund on rent it already paid. Prime Property Fund (a fund managed by Morgan Stanley) owns 73 percent of the property while another 25 percent chunk is held by Crown Acquisitions. The property is delinquent on $70 million in CMBS financing secured in 2015, reports TRD, citing Trepp. The loan is being serviced by Midland, which reports that the an application for Covid-19 relief for the property was rejected because the beneficiary provided insufficient information. TRD writes the Gap risks having to come up with $60 million in future rent, should the lease (good through 2030) be terminated. Gap is complaining that it agreed to pay exorbitant rents at the site due to the location’s enormous footfall figures. Those have been wiped out by the coronavirus crisis.
