The Real Deal New York

Beninati’s 3 Sutton Place heading to the block

Bankruptcy judge signs off on sale of defaulted condo project

September 21, 2016 08:00AM

Joseph Beninati, Richard Kalikow and a rendering of 3 Sutton Place

From left: Joseph Beninati, Richard Kalikow and a rendering of 3 Sutton Place

A bankruptcy court gave the green light for a sale of Joseph Beninati’s troubled 3 Sutton Place condominium project.

The development site and plans for a 262,000-square-foot condo tower drawn by Sir Norman Foster are now jointly up for sale. JLL’s TRData LogoTINY Scott Latham, Richard Baxter, Ron Cohen and Jon Caplan and Meridian Capital Group’s David Schechtman are marketing the property, located at 426-432 East 58th Street.

Beninati’s Bauhouse Group assembled the site with the help of a $130 million loan from N. Richard Kalikow’s Gamma Real Estate. But in January, Beninati defaulted on the mezzanine loan and subsequently filed for bankruptcy to prevent Gamma from foreclosing on the property. According to the New York Post, defaulted interest payments have since swelled the sum owed to $185 million.

In July, Beninati sued Gamma, alleging the lender conspired with Beninati’s attorney Richard R. Kalikow, who happens to be N. Richard Kalikow’s cousin, to take control of the project.

In another twist, Philip Pilevsky of Philips International recently began helping Beninati with funds and legal services. Last week, Gamma sued Pilevsky for allegedly interfering in the project. [NYP] — Konrad Putzier

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