Future of American Strategic Investment Company in Doubt
A series of challenges across its portfolio has put the future of American Strategic Investment Company in serious doubt.
The firm, formerly known as New York City REIT, is in danger of slipping into bankruptcy in the next 12 months, Bisnow reported. The company raised “substantial doubt” over its ability to remain in business, according to filings with the Securities and Exchange Commission.
The biggest issue facing the company is the $140 million debt backing 123 William Street, a Class B office building in the Financial District. The loan, set to mature in March, backs a building ASIC has been trying to sell for more than two years without finding a taker. Meanwhile, occupancy has slipped to 72 percent.
The mortgage on the building is underwater, with ASIC valuing the property at $138 million, below the loan’s outstanding balance. The company bought the property in 2015 for $253 million.
Two years ago, the company — led by Nicholas Schorsch Jr. — sold 9 Times Square for $63.5 million, a $100 million loss from what it paid for the property a decade earlier. ASIC also agreed to a foreclosure of 1140 Sixth Avenue as the value of the Class A office building took a hit.
AR Global is the majority owner of ASIC. In AR Global’s 2025 annual report, released several months ago, it noted that “substantial doubt about the company’s ability to continue as a going concern has not been alleviated.” The company is staring down nearly $250 million in debt.
ASIC posted a $16 million loss in the first half of the year, generating less than $15 million in revenue over the same period. The firm’s unrestricted cash at the end of the second quarter was less than half of what it was a year ago, coming in at $2.4 million in June.
Adding to the pain, ASIC is required to make $500,000 payments to AR Global affiliates monthly, regardless of the company’s performance.
Shares in ASIC have tumbled by more than 90 percent since 2022. The company did not respond to a request for comment from the publication.
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9 Times Square under contract for $63.5m
American Realty Capital acquires 123 William St. for $253M
Midtown Class A office tower takes 90% valuation hit
