The Real Deal New York

Anglo sues Assa over $18.5M 8th Ave. default

April 29, 2011 11:21PM
By David Jones

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Anglo Irish Bank filed a foreclosure suit against Assa Properties, alleging the Manhattan-based developer defaulted on an $18.5 million loan at commercial building 940 Eighth Avenue.

The four-story, 28,400-square-foot building, between 55th and 56th Streets, had been listed for sale since December 2010 at $29 million. The property is listed on the Eastern Consolidated website as in-contract; a spokesperson was not immediately available for comment.

According to the suit, filed four days ago in New York State Supreme Court, senior lender Anglo Irish consolidated several prior loans into a single note in November 2007, and set a maturity date of Nov. 18, 2009.

Anglo Irish said it notified Assa of the default in May 2010, adding that the maturity date could not be extended because the borrower failed to meet additional conditions. By March 24, 2011, the lender said it notified the borrower that the default had not been cured and demanded all principal and interest.

The lender said that is now owed $16 million for the property. The lender is asking for a judgment and sale of the property and also asked for a judgment against Salim, a principal and founder of Assa, and Esak Assa, executive vice president of Waterscape, who each personally guaranteed the loan.

The suit is the latest in a string of troubles for Assa, which filed the Cassa NY Hotel and Residences, at 70 West 45th Street, into bankruptcy protection earlier this month. 

Assa said it had an agreement with an international investor to buy the hotel portion of the Cassa for $130 million

Assa officials were not immediately available for comment. Lawyers for Anglo Irish declined to comment.

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