The Real Deal New York

Discount buyers at One Mad. face suit

May 24, 2010 11:30AM

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One Madison Park (photo: CityRealty)

A developer who bought a discounted Madison Park apartment for less than half its original asking price is now facing a foreclosure lawsuit, according to the Wall Street Journal, as are other would-be buyers. In January, Ian Eichner closed for $5 million on a four-bedroom condo at the 23 East 22nd Street project — listed for $11.75 million at its peak — on the condition that he loan the developers $4.5 million when the contract was signed. A few weeks later, the building’s developers were hit with a foreclosure suit from their lenders, iStar Financial, on the grounds that the closing prices for their apartments were less than the minimum prices agreed upon by the developers and lenders. The suit against Eichner includes other would-be buyers with contracts to purchase at least 10 other apartments at deep discounts. The case lists more than 80 defendants on the docket — from the architect and a crane company to apartment buyers with purchase contracts — and could take months to be resolved. [WSJ]

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