The Factory in LIC heads to special servicing as loan maturity looms

The Factory, a 1.1 million-square-foot office property located at 30-30 47th Avenue in Long Island City, has been sent to special servicing this month for "imminent maturity default," according to Morningstar Credit. The $300 million loan tied to the property is set to mature in October after multiple extensions by the owners, a group led by Midtown-based Atlas Capital Group.

The property's financials have steadily worsened, with operating expenses increasing every year. According to Morningstar, the owners were current on their loan payments through August, but the loan had not previously been delinquent.

The Factory is just one of many properties in New York's outer-borough office market facing financial struggles. With the rise of remote work and a decrease in demand for office space, these properties are struggling to stay afloat.

"The pandemic has greatly impacted the demand for office space in New York City, and properties like The Factory are feeling the effects," said a spokesperson for Morningstar Credit. "The decision to send the property to special servicing highlights the growing financial distress in the outer-borough office market."

https://therealdeal.com/new-york/2025/09/16/the-factory-in-long-island-city-heads-to-special-servicing/