The Real Deal New York

Trevor Davis heads to court to stop 1055 Park Avenue foreclosure

December 08, 2010 07:25PM
By David Jones

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1055 Park and Trevor Davis

Lawyers for developer Trevor Davis are scheduled to appear in New York State Supreme Court tomorrow morning after filing suit to stop lenders from foreclosing on his condominium project at 1055 Park Avenue.

Davis filed suit Dec. 3 in New York State Supreme Court alleging the lender, Manhattan-based Zimco Holdings, plans to illegally foreclose on his six-unit property this Friday.

“Substantial interest has been expressed by potential purchasers of the condo units and given a reasonable period of time, [Davis] would be able to sell all six condominium units in the building and satisfy the Wrightwood loans and the Zimco loan,” according to the complaint.

Davis, in court documents, alleges that Zimco provided a $6 million second mortgage in March 2010 to help him complete construction at the 12-story condo, located at the corner of 87th Street in Carnegie Hill.

According to court documents, Davis borrowed $14.9 million in mortgage loans from Chicago-based Wrightwood Capital in December 2007 to develop the ultra-luxury condo.

Wrightwood declared the property’s senior mortgage loan out of balance in April 2009 and eventually stopped funding the project, forcing Davis to contribute $4 million in equity and borrow the aforementioned $6 second mortgage, which was secured by Davis‘s equity stake in the project.

Wrightwood put the loan up for sale through Eastern Consolidated and by November 2010, sold the loans to an entity called Park Avenue 1055, led by attorney Richard Golden of Miami and Caryn Schechtman, a partner at law firm DLA Piper.

“I’m not at liberty to disclose any plans at this point,” Golden said.

Golden added that he is not acting as an attorney in this deal. Schechtman is the wife of Eastern Consolidated’s David Schechtman.

“My representation on behalf of the lender is complete,” Schechtman said.

Davis disputed the Wrightwood move, claiming in court documents that he got the state attorney general’s office to approve the project, obtained a temporary certificate of occupancy and retained Prudential Douglas Elliman to market the project. Streeteasy.com records show that sales prices were slashed more than 20 percent in July 2010.

Park Avenue 1055 sent a letter to Davis Nov. 12 declaring the senior mortgage in default and by Nov. 24, Zimco sent a letter declaring the $6 million in default. In a Nov. 30 letter, Zimco notified Davis that it planned to auction off the note this Friday, at the state courthouse at 60 Centre Street.

Davis; Tarter Krinsky attorney Scott Markowitz, who represents Davis; Goldberg Weprin attorney Robert LoSchiavo, who represents the lender; and Meister Seelig attorney Matthew Kasindorf, who represents Park Avenue 1055, were not immediately available for comment.

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