Lender Takes Over UES Retail Space Containing Morton Williams
The $44.1 million transaction was part of a “deed-in-lieu of foreclosure” agreement with a firm that oversaw the retail space containing the grocer, which is located in a condo building on East 64th Street.
| 02 Jul 2026 | 02:33
MetLife has acquired a retail space in a Lenox Hill condominium building that includes a Morton Williams grocery store, in a transaction known as a deed-in-lieu of foreclosure. (
)
The residential portion of the condominium building, known as The Royale, will remain unaffected by the MetLife transaction. (
)
The real estate firm Gateside Corporation has transferred ownership over the retail section of a Lenox Hill condo tower to MetLife, the insurance giant that serves as their lender, in a bid to head off foreclosure proceedings.
The $44.1 million handover, known as a deed-in-lieu of foreclosure, notably includes the takeover of the ground-floor space that includes a Morton Williams grocery store.
MetLife is reportedly planning to sell this space, which also includes customer parking, however. Yet Morton Williams recently signed a 30-year lease for the space, and there is no planned disruption of normal operations due to the deed-in-lieu.
Gateside made the sale via an LLC associated with the building at 188 E. 64th St., otherwise known as The Royale, with Elizabeth Smoltz serving as signatory. MetLife was also represented by an LLC, ML HCM Royale Retail, which is based out of New Jersey. MetLife has lent $57 million to Gateside, for costs associated with The Royale, since 2017.
In addition to the grocery store and parking space used by customers, the retail unit passed on to MetLife includes the optometrist business Opytyx.
MetLife also obtained 240 W. 35th St. for $30 million in a 2024 foreclosure auction, after building owner ATCO defaulted on debt that they owed the insurance giant. MetLife has their corporate headquarters on Park Avenue.
Gateside Corporation was founded by Norman Feinberg, who passed away last year. The company has been associated with the retail space in the 40-story tower for decades, as Gateside served as an affiliate of the building’s original development and sponsorship team.
The Royale was developed by the Continuum Company, led by Ian Bruce Eichner, and opened in 1987. It was designed by Frank Williams and Partner Architects. The condominium portion of the building is governed by a board composed of unit owners.
The building contains over 200 residential units, including some which are actively for sale otherwise. According to realtors, one three-bed and three-bath unit in the building is currently being sold for $3,795,000, while others go for as high as $6,000,000. They are also rentals available for a minimum of $4,995.
The building certainly boasts of luxury trappings, as a description from that same realtor notes: “An off-the-street entry garden welcomes you into a grand double height lobby manned with white glove doorman & concierge service. Western exposure residences enjoy fine townhouse garden views while high floors afford spectacular views of Central Park.”
In-building amenities reportedly include a health club with “town house garden views,” washers and dryers on every floor, an entertainment room with a grand piano, and pet-friendly accommodations.
Meanwhile, Continuum maintains a significant portfolio on the Upper East Side outside of The Royale, including The America on East 85th Street and The Kingsley on East 70th Street. They have also developed a condominium building known as The Boulevard on the Upper West Side, at 2373 Broadway; other Continuum projects can be found in Miami, Florida and Las Vegas, Nevada.
Gateside Corporation and MetLife could not be reached for comment as of press time.