RXR tries to avoid foreclosure on Arrow building in Melville
SMSC, which plans to sell this Hauppauge sie for $18 million, will receive tax breaks for another five years.(July 26, 2011) Credit: Danielle Finkelstein
The owners of the building on Marcus Avenue in Melville that Arrow Electronics Inc. occupies are seeking negotiations with lenders to stave off foreclosure, said Trepp Llc, a Manhattan-based real estate analytics firm.
The building's owner, Uniondale-based RXR Corp., owes lenders $51.5 million, Trepp said. The loan matured in October 2010. "That came and went," said Trepp senior managing director Manus Clancy. RXR was supposed to pay back the loan but did not, Clancy said.
RXR officials did not return repeated calls over several days seeking comment.
A major issue for the building is that Arrow's lease expires in 2013. Potential lenders may be wary of making loans when a major tenant may leave, Clancy said. Arrow is moving its headquarters from Melville to a Denver suburb. Arrow said last week it is "evaluating the best use of the Marcus offices within the context of our other properties in the Long Island area."
Clancy said, "The borrower is trying to negotiate some way out of this."
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