The Real Deal New York

Stalking horse bidder to take control of 45 John Street for $73.6M

December 09, 2015 06:58PM
By Kyna Doles and Hiten Samtani

45 John Street

45 John Street in the Financial District

A stalking horse bidder is set to take control of 45 John Street, a Financial District condominium building, for $73.6 million, after a bankruptcy auction failed to attract higher bids.

A foreign investor under the entity 45 John NY, LLC was the stalking horse bidder. Documents indicate the entity is tied to real estate investor Alexander Levin, who is also part of the investor group that bought the Beekman Tower for $138.8 million. Both properties had connections to troubled Brooklyn real estate investor Chaim Miller.

The 14-story, 102,000-square-foot property was put up for auction as part of a bankruptcy settlement for Orin Management. An entity created by the Harry Sohn-led firm was initially in contract to purchase the property from Miller, but filed for bankruptcy after Miller attempted to back out of the deal.

Orin alleged Miller failed to disclose that the building’s mortgages were in default and was worried it would lose its $14.3 million down payment.

Miller was also hit with numerous lawsuits from investors who claimed they loaned him money for the acquisition, and by a partner who said he did not authorize the sale of the building to Orin.

The settlement will provide Miller’s partner in the building, Peter Chun Dong, with $1.5 million. Josh Zegen’s Madison Realty Capital, which held the debt on the property, will receive $53 million, and Orin will receive $13.1 million plus all existing cash reserves, according to the bankruptcy settlement agreement. Miller and his partner Sam Sprei are responsible for paying the mortgage’s accrued interest.