The Real Deal New York

Copley penthouse to hit foreclosure auction block

Property, currently on market for $16 million, is subject to outstanding lien of $22 million

July 25, 2012 02:00PM
By Katherine Clarke

The Copley building and the interior of the penthouse apartment

A 4,800-square-foot Lincoln Square penthouse currently on the market for $16 million is slated to hit the foreclosure auction block next month with an outstanding lien of $22.1 million, according to data from Propertyshark.com

The 28th-floor spread at the Copley, a full-service condominium building at 2000 Broadway, has taken center stage in legal dispute between mortgage lender Investec Bank, an international banking and asset management group based in the United Kingdom, and owner Opalgem Investments, a corporation based in the British Virgin Islands.

A subsidiary of Opalgem, a limited liability company named Elite International Finance, purchased the Copley apartment for $9.06 million in 2004 and took out a $15 million mortgage from Investec against the property four years later. The full $22.1 million debt is derived from the balance of the mortgage plus interest, late fees and guaranties, according to the complaint, filed by attorney Joseph DiBenedetto of the law firm of Winston & Strawn. DiBenedetto was not immediately available for comment.

According to the final judgment against the property, dated June 26, the defendant has not responded to filing, but the four-bedroom, three-bathroom unit is currently listed for sale with Shlomi Reuveni of the Brown Harris Stevens Select marketing team for $16 million. The home, which is on Broadway between 68th and 69th streets, is slated to be auctioned August 22, at 60 Center Street.

Attorney Terrence Oved of the law firm Oved & Oved, who was not involved with the case, said it is not unusual for a residential property to be listed for sale in conjunction with a looming foreclosure auction. Occasionally, the debtor will come to an agreement with the bank whereby, if he or she secures a certain amount for the sale of the home, the foreclosure action will be dropped. It was not immediately clear if that is the case in this instance.

Either way, “the buyer will be unable to obtain clear title to the property while the foreclosure action is still pending,” Oved said.

Reuveni was not immediately available for comment on the listing. The residence features unobstructed views of Central Park and the Hudson River. It has a living room and formal dining room, a chef’s eat-in kitchen, a solarium and planted terrace. The 28-unit building has a fitness room, pool, playground and landscaped common terraces.

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