Debt on Stalled NYC Condo Conversion Sells at 85% Discount (1)

The loan on a stalled Manhattan condo conversion site has sold at a deep discount.

Empire Capital Holdings and Hakimian Organization bought the debt on 335 W. 35th St. for roughly $15 million, which is about 85% less than the loan’s payoff amount, according to people with knowledge of the deal.

Buying the loan offers a potential path to owning the property. Empire and Hakimian are exploring options to proceed with converting the former factory building near Penn Station into rental apartments, said the people, who asked not to be named discussing private matters.

The property, owned by entities ...