Real estate developer Craig Nassi’s father has gone to court to recover some $5.7 million in loans and interest payments that his son allegedly owes him for unspecified business ventures.
Craig’s father Bijan Nassi, also a real estate entrepreneur, alleged that his son had failed to repay $3.35 million in loans made over several years, as well as the accrued interest of $2.3 million, the suit filed yesterday in New York State Supreme Court reveals.
The dispute highlights divisions that occur within real estate families. In another father-and-son divide, Billy Macklowe split off from his legendary father, developer Harry Macklowe, in 2010 to launch his own firm William Macklowe Company. In another example of a family split, the Elghanayans divided Rockrose Development into TF Cornerstone and Rockrose.
The elder Nassi advanced the money as part of a verbal agreement, with an interest rate of 6 percent, the court papers said.
“Despite [Bijan's] demands for repayment, [Craig] has not repaid the loan,” the suit says.
Bijan Nassi asked the court for the full $5.7 million, along with compensatory and incidental damages and interest.
Craig Nassi, who leads his BCN Development, and a company called Bijan Nassi Family LLC in a joint venture paid $265 million for the 330,000-square-foot office building at 315 Park Avenue South in June 2007, near the peak of the market. Craig owned 33.3 percent of the joint venture, and the LLC owned 66.7 percent, documents filed with the U.S. Securities and Exchange Commission show.
The building ran into financial trouble, and lender CWCapital Asset Management filed to foreclose on the mortgage in the summer of 2012. Landlord SL Green Realty later purchased the defaulted loan.
Then this past May, the Nassis sold the building for $234 million – a loss of $31 million — city property records show, although The Real Deal and others reported that the sale price was closer to $250 million.
Bijan Nassi owns and manages multifamily properties, and in June 2011 partnered with another son, Daniel, through a company called BDN NY Management, to pay $20 million for the rental building 220 Park Avenue South, which they plan to convert to condominiums, according to reports at the time.
Craig Nassi declined to comment, and Bijan and his attorney Patrick Papalia, a partner with the law firm Archer & Greiner, did not respond to a request for comment.