An auction scheduled for Stellar Management’s Riverton Houses in Harlem on Friday has been canceled, a spokesperson for Stellar Management said. He did not provide further detail.
Realty Finance Corporation, of Hartford, Conn., had called for the auction to foreclose on the $25 million mezzanine loan it lent to Stellar Management, headed by Larry Gluck, and Rockpoint Group in 2007. The pair partnered to buy the complex in 2005 and refinanced it two years later, borrowing the mezzanine loan and a first mortgage of $225 million. Stellar Management announced last year it would default on their loan.
The troubled 1,230-unit development was valued at $196 million, a price 15 percent lower than its first mortgage for the planned foreclosure sale, The Real Deal reported earlier today.
Wells Fargo Bank, the trustee for the $225 million loan that was packaged into a commercial mortgage-backed security, filed in February to foreclose on the property and place it in receivership.
Note: Correction appended.