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Foreclosed Broadway Retail Condo Heads to Sale

Owners and investors in Manhattan commercial property should review loan maturity dates alongside tenant income.

Updated on Nov. 3, 2026 in Commercial

Bold flat-color editorial illustration of a plain stone-and-glass commercial tower in a narrow city street, evoking Manhattan commercial real estate and a forced sale.
A receiver is marketing a foreclosed Broadway retail condo at 170 Broadway after its lender won foreclosure, even though The Gap has held the space since 2015 on a lease running through 2030. AI Illustration. Upload story photo >

A receiver is marketing the foreclosed retail condo at 170 Broadway in the Financial District for sale after the lender won foreclosure. The Gap has occupied the entire space since 2015 and holds a lease through 2030.

Why it matters

The property's appraised value fell from $100 million in 2014 to $40 million last year, even as net operating income rose 27 percent since 2015. For Manhattan households and small investors watching commercial real estate, the case shows how a loan maturity deadline can trigger a sale even when a tenant is performing.

The property was bought for $70 million in 2014 and carried $70 million in loans taken in 2015, with a referee's report putting the total due at $63 million. Average Financial District Broadway asking rents are $227 per square foot, down 8 percent from a year earlier.

The players

The Gap

A national apparel retailer whose lease at the site runs through 2030 and which has occupied the entire space since 2015.

Crown Acquisitions

A former owner of the 170 Broadway retail space that bought it with PPF Retail in 2014.

PPF Retail

A former co-owner of the 170 Broadway retail space that bought it with Crown Acquisitions in 2014.

The details

The borrower could not pay off the debt by the April 2025 maturity deadline, so the lender transferred the loan to special servicing and filed to foreclose in May 2025. The lender won summary judgment in November 2025, and the judge ordered the foreclosure and sale in March 2026. The court later approved a receiver to sell the property, and the receiver is working out a possible lease extension with the Gap.

Timeline

  1. 2014: Crown Acquisitions and PPF Retail bought the space for $70 million.

  2. 2015: The borrower took out $70 million in loans, and the Gap began occupying the space.

  3. April 2025: The loan maturity deadline was missed.

  4. May 2025: The lender filed to foreclose.

  5. March 2026: The judge ordered foreclosure and sale of the property.

The Home Front

Average asking rents on Financial District Broadway are $227 per square foot, down 8 percent from a year earlier. The 170 Broadway sale shows commercial values can fall sharply even when net operating income climbs, as the appraisal drop from $100 million to $40 million illustrates.

If you rent or own a small commercial space or invest in commercial property, check your lease terms and any loan maturity dates against current market conditions. Work with a licensed attorney or commercial lender before making any transaction decisions.

The takeaway

A property's value can fall sharply even when its tenant is paying and income rises, so loan maturity dates matter as much as rent. Keep a dated record of any loan or lease deadlines you hold, and consult a licensed commercial lender or attorney before acting on a deadline.

Further reading

For context on how these deals move through the market, explore Commercial listings and trends across New York City.

Source note: This article includes information reported by The Real Deal New York.