Lehman Brothers Holdings is expected to take control of a Kent Swig development site at 45 Broad Street at a foreclosure auction scheduled for next month.
Swig’s Swig Equities lost control of the site after Lehman filed to foreclose in 2009; the site was then put in the hands of a court-appointed receiver. Swig is named in the foreclosure suit, along with various organizations that have filed liens against him.
Among the other defendants are Langan Engineering & Environmental Services, New York State Department of Taxation and Finance and other tenants, occupants, contract parties, lien-holders and others that may claim an interest in the property. The lien amount is $72.5 million in total. The auction will take place Nov. 16, according to PropertyShark.com.
“Forty-five Broad has defaulted under the terms of the loan documents by… failing to pay all unpaid principal and interest on the notes on the stated maturity date of Feb. 28, 2008,” the foreclosure filing states.
When contacted by The Real Deal, a representative for Swig Equities confirmed the auction, but declined to comment further.
Patricia Mattoon, a principal at Mattoon Real Estate and the court-appointed receiver, said: “Swig still owns the property until the foreclosure auction proceedings are complete.”
When the company first purchased the site in 2006 for $29 million, Kent Swig had plans to construct a 62-story hotel and condominium development named Nobu Hotel and Residences. He partnered with actor Robert De Niro on the project, which never saw the light of day.
Nobu hasn’t been Swig’s only ill-fated project in recent years. The developer previously faced foreclosure at 80 Broad Street earlier this year and there were reports that Bank of America was trying to foreclose on the duplex penthouse at imperial 740 Park Avenue once shared by him and now-estranged wife Elizabeth Macklowe, daughter of Harry and brother of Billy.
It was previously reported that Lehman was seeking permission from a bankruptcy court to invest $25 million in 45 Broad Street and 25 Broad Street, another Swig property foreclosed on by Lehman Brothers, which filed for bankruptcy in 2008.
“The additional investments will help enable [Lehman] to maximize the value of its existing investment in the properties and, by extension, recoveries for its estate,” Lehman said in court documents.
Calls to Lehman were not immediately returned.