The Real Deal New York

No. 22 Renwick hits the block

Condo project on the market following foreclosure judgment

June 05, 2012 04:45PM
By Guelda Voien

From left: David Schechtman of Eastern Consolidated, a rendering of No. 22 Renwick and Fredrik Eklund of Prudential Douglas Elliman

The final chapter of a long saga at No. 22 Renwick, a boutique condominium development at 22 Renwick Street in the Hudson Square neighborhood, seems finally to be coming to a close. The developers’ interest in the embattled project, where buyers sued after the developers failed to complete construction, will be sold by Eastern Consolidated following a foreclosure judgment against the developers for nearly $25 million, Eastern confirmed to The Real Deal.

The 19-unit condo project, originally developed by Orange Management and Helix Partners, stalled during the recession and is now about 80-percent built. The foreclosure judgment and lender’s related right, title and interest is now being marketed by Eastern brokers David Schechtman and Alan Miller for $24.76 million, the pair said.

Schectman said he expects that bidding on the project will be “nothing short of ferocious.”

Sources with knowledge of the building said it would cost around $2 million to complete construction at the building, which is expected to trade near $1,000 per square foot.

According to sources close to the deal, an agreement has been reached where the previous litigants cannot pursue further legal action. The potential sale of the 31,000-square-foot building also includes an option to buy a 1,384-square-foot, ground level retail condo.

Construction on the troubled condo began four years ago, and it has been plagued with lawsuits and a complaint filed with the New York State Attorney General’s office. In 2009, condo buyers at the building sued to get their deposits back after the developer failed to deliver the units on time.

The buyers did eventually get their money back, according to Steven Sladkus, a partner at law firm Wolf Haldenstein, who represented several of them. Orange Management and Helix Partners returned the funds after pressure was applied by the state AG’s office, Sladkus said.

Last year, MB Financial Bank, which took over for the project’s original lender Broadway Bank (now defunct), filed to move forward with foreclosure, according to previous reports. MB Financial did not immediately return calls for comment. At the time, all 19 condo units were unsold and unoccupied.

Prudential Douglas Elliman broker Fredrik Eklund, who has toured the building, noted that the location and lack of new development condo stock there bode well for it once a new owner takes over. “I love that location,” Eklund said. “I am very bullish on the efficiency of the units in the upcoming fall condo market.”

 

 

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