Weeks before Anglo Irish Bank filed to foreclose on his Rector Square condominium, developer Yair Levy was sued by an advertising agency alleging he defaulted on more than $200,000 in back payments.
AgencySacks, whose clients include Leading Hotels of the World, American Express and real estate broker Michael Shvo, filed suit January 22 in New York State Supreme Court, alleging Levy’s YL Management stopped making payments in November 2008, after reaching a prior deal to pay the firm in monthly installments.
“He was owed a whole bunch of money,” said Leonard Sclafani, attorney for AgencySacks. Levy was not immediately available for comment.
Levy’s YL Realty, acquired the former Parc Place apartment building at 225 Rector Place in 2005, as part of a $165 million deal with Related Companies. The deal also included the Park Columbus apartment building at 101 West 87th Street.
AgencySacks originally signed with Levy in December 2006 as the exclusive advertising and marketing agency for Rector Square, according to the lawsuit. By March 2007, the agency and developer signed a new agreement, modifying the terms and extending the relationship.
However, in September 2008, YL Management owed around $308,000 to the firm, mostly for marketing materials and services. They worked out a settlement agreement that allowed Levy to make monthly installment payments, ending in March 2009. According to the suit, YL Management paid $50,000 for September, $40,000 for October, and then stopped making payments, leaving a balance of $218.000.
As The Real Deal previously reported, construction at Rector Square halted and the sales office shut down in December 2008. Anglo Irish Bank filed suit to foreclose in February, claiming Levy owed more than $117 million.