Acore Capital has put an end to Beacon Capital Partners’ plans to build a life science development in Hell’s Kitchen.
The lender took control of two office buildings at 707 11th Avenue and 615 West 50th Street that were once used as Kenneth Cole’s headquarters and more recently pegged for a 185,000-square-foot life science development. The sale was a deed-in-lieu of foreclosure, according to property records.
The transfer value of the sale was $60 million, per records. PincusCo first reported the news.
Beacon Capital Partners and CalSTRS partnered with Georgetown to buy the properties from SL Green for $95 million in 2022. The developers planned to construct a seven-story life science facility with ZoE Life Sciences. The project was set to be the first ground-up life science development in Manhattan in more than a decade, according to YIMBY.
But after filing plans with the city in 2023 to demolish the existing office buildings, the project never got off the ground. After a series of extensions, the project’s loan came due in 2025.
Georgetown, which had a minority interest, sold its stake in the project to Beacon in early 2026, according to a Georgetown spokesperson.
In April, Acore, as an administrative agent for a syndicate of lenders, filed a pre-foreclosure lawsuit against an affiliate of Beacon Capital, claiming the developer defaulted on its $60 million loan.
New York’s once hot life sciences sector has slowed down. Only 27,000 square feet of lab space was leased in the first quarter, down 84 percent from the prior quarter, according to CBRE. Year-to-date leasing velocity fell 10 percent year over year, according to CBRE.
Taconic Partners recently sold an Upper East Side property where a life science space was once planned. Taconic sold the building at 309 East 94th Street to multifamily developer LCOR for $73 million, just $3 million more than it paid for the property with Nuveen and Flatiron Equities nearly five years ago, property records show.
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