Owners of dilapidated Times Square hotel dubbed Americas filthiest default on $223M loan: report

The owners of a run-down and long-vacant hotel dubbed the “black hole of Times Square” are allegedly hundreds of millions of dollars behind on loans linked to the property — and their lenders are seeing red.Joseph and Meyer Chetrit were reportedly sued by Mack Real Estate Credit Strategies for failing to pay $223 million in mezzanine loans secured on the Carter Hotel, the infamous hulking property at 250 W.43rd St., which has been cited multiple times as “America’s filthiest hotel.”Mack wants a “quick payoff” on the loans issued in 2022 that came due in September, according to Crain’s.

If the Chetrits can’t put up the money — or negotiate new terms — by a Feb.20 Manhattan Supreme Court hearing, Mack could move to foreclose on the hotel, the outlet reported.The case doesn’t involve the primary mortgage on the property, which opened as the Hotel Dixie in 1930 and underwent numerous ownership changes.The Chetrits bought the 700-room, low-end inn for $192 million in 2015.

Although they planned a major renovation, work stalled, leaving a jumble of scaffolds and construction fences around the building for the past several years.The Chetrits also owe more than $420,000 in state and city fines on the building’s dilapidated state, Crain’s said.Joseph Chetrit’s lawyer, Leo Jacobs, told Crain’s he’d try to postpone the February court appearance by up to two months.He blamed the loan situation on “market volatility.”Jacobs didn’t respond to The Post’s request for further comment.The eyesore stands between the Lyric Theater, home to “Harry Potter and the Cursed Child,” and the Westin Hotel.

Its derelict condition has long irked area businesses and civic leaders.Asked whether the Carter fell within the boundaries of the Times Square Alliance Business Improvement District, organization president said, “Unfortunately, yes.”A manager at Los Tacos No.1 across the street, who didn’t want his name used, said, “It’s bad.

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