Related looks to wrest control of One Madison

Steve Ross is the latest developer angling for a piece of One Madison Park, the skinny glass condo at 23 East 22nd Street that’s been mired in lawsuits since its owners ran out of cash in 2009.

According to the Wall Street Journal, Ross’ Related Companies is working on a bid with Amalgamated Bank, one of the project’s junior lenders, to wrest control of the property through a buyout of senior lender iStar Financial’s debt.

The Amalgamated plan was revealed in yet another lawsuit filed yesterday by Ziel Feldman’s HFZ Capital, which is expected to submit an official rescue plan for One Madison to federal bankruptcy court in Delaware within days.

The HFZ plan, which is backed by iStar and the original developers, including Ira Shapiro and investor Cevdet Caner, would reportedly involve Feldman buying the building for $165 million and paying upwards of $40 million to complete it.

In the lawsuit, HFZ alleges that Amalgamated is “attempting to swindle a lucrative corporate opportunity” by exercising its right to buy out the rest of iStar’s $238.5 million loan, and seeks $75 million in damages. HFZ had tried to buy out Amalgamated’s interest in the building last year, but the deal never closed and is also the subject of separate litigation.

It’s unclear what role Related would play in an Amalgamated buyout, but the company formed a $750 million fund to invest in distressed properties earlier this year. [WSJ]