From left: Yair Levy, Rector Square (source: PropertyShark) and Attorney General Eric Schneiderman

A state Supreme Court judge has ordered developer Yair Levy to pay $7.4 million in restitution to the Rector Square condominium and permanently banned him from selling real estate in New York state.

Judge Joan Lobis found last month that Levy defrauded the Battery Park City condo conversion, spending millions of dollars in reserve fund money on illegal personal and general business expenses, including charge card accounts, mobile phone bills and writing checks to family members.

The judgment permanently bans Levy from selling condos or co-op projects in New York state, virtually ending a career lasting more than 30 years in the U.S. [more]

From left: Winston Fisher, a partner with Fisher Brothers, Park Columbus and Doug Harmon of Eastdil Secured

A joint venture between Fisher Brothers, BlackRock and a California pension fund won the 95-unit Upper West Side apartment building Park Columbus with a bid of $48 million in a bankruptcy auction this morning.

In March, embattled developer Yair Levy lost the building located at 101 West 87th Street that he had tried to convert to condominiums, in foreclosure to Garrison Residential Funding. The mortgage and other debts totaling $52.6 million will be wiped out once the closing occurs, court records show.
Fisher Brothers, a major Midtown-based commercial and residential property owner, partnered with investment firm BlackRock and California State Teachers Retirement System, to place the minimum bid in November. Winston Fisher, a partner with Fisher Brothers, declined to comment. [more]

From left: Yair Levy, Eastdil’s Doug Harmon and 101 West 87th Street

Commercial and residential landlord Fisher Brothers placed a $48 million bid in bankruptcy court to buy the Upper West Side apartment building Park Columbus where embattled developer Yair Levy failed in his effort to convert the rental property to condominiums. The 95-unit apartment building at 101 West 87th Street at Columbus Avenue, constructed by the Related Companies in the 1980s, is being sold in Manhattan federal bankruptcy court.

An entity called 101W 87th LLC made the so-called stalking horse bid of $48 million, Manhattan federal bankruptcy court records show. A source who declined to be identified but has knowledge of the deal said Fisher Brothers, the long-time real estate family, controlled the bidding entity. The property has loans valued at $52.6 million, city records show. [more]

Yair Levy and Park Columbus

Two bidders, Ofer Yardeni’s Stonehenge Partners and the Fisher Bros., are competing to pony up around $50 million and walk away from bankruptcy court with Yair Levy’s Park Columbus, the troubled condominium conversion at 101 West 87th Street, according to the Post. The 95-unit building is being sold in bankruptcy court by Eastdil Secured’s Douglas Harmon and Adam Spies after Levy filed for Chapter 11 bankruptcy in a last-minute attempt to avert foreclosure last year. Other bidders had included Area Property Parnters, Rockpoint Group and Brack Capital before the list was whittled down to the final two. Levy bought the former Related Companies rental building, then called Columbus Green, for $42.5 million as part of a $165 deal that included 225 Rector Street but fell short on cash amid his plan to empty out the rental apartments and add 40,000 square feet for luxury condos. [Post, 3rd item]

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Homestate Properties office at 102-104 Fulton Street

A new sales and rental brokerage with ties to embattled developer Yair Levy has opened at 102-104 Fulton Street, the former home of now-defunct firm Homestead New York. And with a remarkably similar name — Homestate Properties — the new firm may be trying to piggyback on the success of its predecessor, which ceased operations in 2008 in the midst of the real estate downturn. The new firm is being run by Daniel Deutsch, Levy’s son-in-law and onetime business associate, and is headquartered in office space owned by Levy in the Fulton Chambers building, a nine-story building that Levy and partners converted to 14 condo units in 2004. After selling out Fulton Chambers, Levy retained ownership of commercial condos in the building, according to city documents, and leased space to sales and rental firm Homestead, founded by Eli Adahan and Danny Shamooil. Homestead had about 35 agents and three offices by the time it closed. Its co-founders, who are not involved in Homestate, have now moved on to other ventures. Levy himself may not be involved in the new venture, either. Homestate filed for incorporation with the Department of State in November 2009, according to the agency’s Web site, listing as its address Park Columbus at 101 West 87th Street — a stalled condo conversion, owned by Levy, which is now in foreclosure. But Homestate’s real estate license lists 102-104 Fulton Street as its headquarters, naming Deutsch as a salesperson and attorney Lior Aldad as the broker. [more]

A New York State Supreme Court judge shut the door on developer Yair Levy in the highly publicized foreclosure at Battery Park City’s Rector Square condominium.

Judge Joan Madden awarded summary judgment this afternoon to Anglo Irish Bank, which filed to foreclose after Levy’s firm defaulted on a $165 million mortgage loan. Madden rejected Levy’s arguments that the bank subverted the project by cutting off funding, and noted numerous defaults by Levy’s YL Real Estate, including improper withdrawals from the emergency reserve fund and “questionable” requests for construction money.

“Anglo further alleges that at least one contractor has accused YL of pocketing some of the loan proceeds and that YL embezzled most of the tenant reserve funds,” Madden wrote in her decision.

Levy himself filed suit in state Supreme Court, alleging the bank forced the project into bankruptcy by shutting off his construction funds.

Levy was not immediately available for comment, nor was YL Real Estate attorney David Segal. Christopher Sullivan, an attorney representing Anglo Irish Bank, was also not immediately available. [more]

Yair Levy and Park Columbus condominium at 101 West 87th Street on the corner of Columbus Avenue

The bankruptcy court of New York’s Southern District dished out another batch of bad news for embattled developer Yair Levy yesterday, ruling that the lender on Levy’s Park Columbus development at 101 West 87th Street could move forward with foreclosure proceedings, Crain’s reported. Levy had defaulted on the 95-unit condo’s $20 million loan last year, but the day before a September foreclosure auction was scheduled for the property, Levy filed for bankruptcy on the building and petitioned to block the auction. Despite the legal blow, Dan Deutsch, a representative for Levy from YL Real Estate Developers, said that Levy’s group will bring forward claims against its lenders. “We anticipated this might happen, but regardless, we are still pursuing damage claims against the banks,” Deutsch said.