A 14,000-square-foot commercial condo at 350 West Broadway in SoHo is headed toward foreclosure after its ownership group defaulted on a $15 million mortgage, according to a Manhattan Supreme Court filing. Joseph Sitt and Elyahu Cohen are named in the filing as guarantors of the debt, with lender Rialto Capital Advisors moving to seize the property between Broome and Grand streets.
As reported by The Real Deal, the retail space has sat largely empty since Amazon's AWS Startup Loft — a networking and event hub for entrepreneurs and software developers, according to Fitch Ratings — vacated the storefront nine months ahead of its 2024 lease expiration. Sitt and Cohen both appeared on a 2020 city-record document tied to the property's mortgage refinancing, and the same court filing identifies them as guarantors of the debt now in default.
Ownership of the space is murky. Sitt is reportedly only a minority owner of 350 West Broadway, while Regal Ventures may reportedly be the majority owner — though Regal Ventures itself claims to be merely a property manager, not an owner, the outlet's reporting notes. That tangle of ownership and personal guarantees is not unusual in commercial mortgage workouts, where guarantors can face personal recourse claims even when their equity stake in the underlying ownership entity is limited, according to federal disclosures tied to the loan's securitization.
A Luxury Redevelopment's Long Fall
The building itself dates to a 2008 redevelopment by Aby Rosen's RFR, which reshaped 350 West Broadway into a 10-story mixed-use structure combining commercial space with seven residential condos on its upper floors. RFR marketed the building's residential penthouses for as much as $26 million before selling off the retail portion in 2013 for $24.5 million, according to The Real Deal's historical reporting. Securities filings tied to the CMBS trust that holds the current loan show the commercial condo represents roughly 30% of the building's overall condominium regime — enough to grant its owner just one seat on the three-member condominium board, leaving the remaining 70% of the property, the seven residential units, with outsized control.
Federal disclosures also show Sitt was named as a defendant in two 2019 New York State court actions brought by trustee Wilmington Trust, alleging default on personal loan guarantees totaling $34 million. Those filings, tied to the same SEC-registered securitization records, underscore a pattern in which Sitt's personal guarantees on commercial mortgages have repeatedly drawn legal exposure when underlying property revenue falls short of debt payments.
Part of a Broader Pattern for Thor Equities
The 350 West Broadway default is not an isolated episode for Sitt's Thor Equities. Blackstone filed a foreclosure lawsuit in April 2025 against Thor over a $10 million mortgage tied to 25-27 Mercer Street in SoHo, alleging roughly $9.5 million in arrears, a dispute Thor Snaps Up $56M Broadway Gem detailed alongside Thor's $56 million purchase of 1165 Broadway from David Haddad in March. That NoMad building is a fully leased, 58,000-square-foot office and retail property, a stark contrast to the vacant SoHo storefront now facing foreclosure.
Thor's footprint has continued to grow even as these disputes play out. The company closed on the debt-free purchase of 1359 Broadway, a 486,000-square-foot office tower, from Empire State Realty Trust for $218 million — a price working out to more than $448 per square foot — a deal covered in Hoodline's report on Thor's Garment District tower buy. Thor also previously lost and then reacquired a foreclosed SoHo storefront at 440 Broadway, a saga chronicled in a separate Hoodline report.
SoHo's Retail Boom Leaves One Storefront Behind
The foreclosure comes as SoHo's broader retail market is thriving. CoStar research found the neighborhood's retail availability rate dropped to 9.8% in late 2025 while average asking rents jumped 25% year-over-year to $355 per square foot, according to a report from CRE Daily. The Real Estate Board of New York's first-half 2026 Manhattan retail report similarly found SoHo among the tightest commercial corridors in the borough, with fewer than 20 actively marketed storefronts available.
Yet individual vacant properties can remain stuck even amid a hot market. A June 2026 report from the NYC Comptroller's Office found that while citywide storefront vacancies dropped to 11%, or roughly 15,700 empty units, localized vacancy hotspots in Lower Manhattan remained near 20% — and a storefront near a vacant property was found to be 30% more likely to remain unoccupied itself. Other SoHo lenders have moved decisively against defaulted properties in recent months: Capstone Equities acquired 606 Broadway for roughly $50 million after foreclosing on developers Vornado and Madison Capital, a deal detailed in Hoodline's report on Capstone's takeover of 606 Broadway. In a similar pattern, an investor group that bought a foreclosed 5,400-square-foot SoHo retail condo on Mercer Street for $2.4 million in late 2024 relisted it in May for nearly $12 million after renovating and leasing it to a fashion brand, according to Hoodline's coverage of the Mercer Street flip.
It remains unclear how the foreclosure at 350 West Broadway will ultimately be resolved, or how the competing claims over ownership between Sitt, Cohen and Regal Ventures will be sorted out in court. The Real Deal's reporting, credited to contributor Holden Walter-Warner, does not indicate that any of the named parties have yet responded publicly to the filing.
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