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NYC REIT faces bankruptcy risk within a year amid rising defaults
The company’s $140M loan tied to 123 William St. is due to mature in March, and occupancy at the tower fell to 72% as the REIT failed to find buyers for the building.
American Strategic Investment Co., the REIT that trades under the NYC ticker, faces “substantial doubt” about its ability to remain a going concern, with filings indicating it could fall into bankruptcy within the next 12 months. Bisnow notes the risk is tied to its largest remaining asset, the 27-story office tower at 123 William St., whose mortgage is underwater and set to mature in March.
The REIT, which changed its name from New York City REIT in 2023, has been struggling for years after the pandemic, including tenant departures and debt defaults. Its shares have fallen more than 90% since 2022, and its outlook for paying down a reported $249M debt pile has weakened as high interest rates have persisted and losses have accumulated.
Bisnow reports the REIT’s biggest obligation is the $140M loan on 123 William St., and it announced plans in April 2024 to sell the property but found no takers. The tower’s occupancy declined from 84% a year earlier to 72% as of June, according to its most recent quarterly report filed with the SEC.
For the first six months of 2026, the REIT lost $16M and generated $14.7M in revenue, while affiliates of AR Global collected about $6M in advisory and management fees over the period, with $4M accepted. In remarks accompanying its second-quarter results, CEO Nicholas Schorsch Jr. said the company remains focused on completing asset dispositions and directing capital toward opportunities expected to create durable value for shareholders.