Shaya Boymelgreen and 20 Pine Street

The developers of 20 Pine Street, led by Africa Israel USA, have settled a probe by Attorney General Eric Schneiderman for allegedly covering up construction defects at the troubled condominium, but are facing a new $20 million lawsuit from unit owners over the same charges, The Real Deal has learned.

Jesheyanu “Shaya” Boymelgreen and Tamir Kazaz, president of AFI USA, signed an agreement to pay $144,000 in fines to the state and allow prospective buyers to rescind their contracts. The developers failed to disclose a Rand Engineering report listing $5.6 million in defects, ranging from cracking throughout the building, mold in the sauna, damaged heating systems and other problems, according to documents filed with the AG. [more]

Courtyard at the Apthorp

Following months of legal maneuvering, a state Supreme Court judge has ruled that Anglo Irish Bank can finally sell the troubled mortgage loan backed by the Apthorp condominium on Manhattan’s Upper West Side.

Judge Jeffrey Oing issued an order Nov. 29 finally allowing Anglo Irish Bank to move ahead with the sale of the $385 million mortgage loan to Dallas-based Lone Star Funds, but sources familiar with the negotiations say a final agreement was still being worked out to complete the deal.

The Apthorp loan, which has a remaining balance of $225 million. just before the suit was filed Sept. 13, was one of the largest in a group of $5 billion in troubled loans to be acquired by Lone Star. Anglo agreed to sell its entire $9.5 billion U.S. portfolio after the Irish government took over the troubled lender and agreed to sell off all of its non-core holdings around the world. JPMorgan Chase and Wells Fargo agreed to buy the remaining tranche of performing loans. [more]

Developer Maurice Mann and the interior and exterior of a penthouse unit at the Laureate

Maurice Mann, the original developer of the Apthorp condominium conversion, has purchased a penthouse unit at the Laureate, the Stahl Organization’s new luxury condominium at 2150 Broadway, for over $7 million, according to public records filed with the city today.

Mann closed on the 2,532-square-foot, three-bedroom residence at the Laureate on Nov. 18, according to records, with a price of $7.37 million. Though he was not immediately available for comment, a person who answered the phone at his office confirmed the purchase.

The unit, which boasts “a great room with extra large windows and a set of French doors that open to a Juliet balcony at the [front] of the building,” was last listed with Shlomi Reuveni, a broker and head of the Brown Harris Stevens Select team, for $7.7 million, according to Streeteasy.com. [more]

New Jersey real estate investment firm the Klein Group, which focuses on retail properties, paid $20 million for four retail condominiums at the residential building the District, at 111 Fulton Street in the Financial District.

The four individual condos are comprised of 17,200 square feet of ground-floor space and 4,620 square feet on the lower level. Currently, about 45 percent of the total space is vacant, Jacob Klein, the president of Klein Group, said. He said the firm was in advanced discussions with various tenants for the available space.

The sold out District, a 163-unit residential condo developed by Africa Israel, Wonder Works Construction and Urban Equities NY, is at the corner of William Street and is two blocks east of the under-construction Fulton Street Transit Center at Broadway. – Adam Pincus [more]

Africa Israel USA is selling the Clock Tower building at 5 Madison Avenue to an undisclosed buyer for $165 million, the company announced today.

The transaction is expected to close Dec.15, or upon extension of the agreement and an additional $1 million, around Jan.16, 2012.

“We are delighted to have reached an agreement with a very credit-worthy buyer to secure the future of this remarkable building and support the burgeoning vitality of the Madison Square Park neighborhood,” Tamir Kazaz, CEO of Africa Israel, said in a statement, declining to provide information besides what was in the release.

According to Laurie Golub, general counsel and managing director of business affairs of Africa Israel, the buyer has made a $5 million deposit — $2 million of which is non-refundable. — Miranda Neubauer [more]

Anglo Irish Bank said in a court filing yesterday that the developers of the Apthorp condominium, on Manhattan’s Upper West Side, gave the lender the right to sell the property’s $385 million mortgage to a third-party by waiving a “no-assignment” clause in the loan agreement, and later defaulted on the loan by failing to meet sales targets.

The Apthorp developers, led by billionaire Lev Leviev’s Africa Israel USA, filed suit in state Supreme Court earlier this month asking a judge to block the sale of the loan to Dallas-based Lone Star Funds, claiming the transfer would threaten the viability of the project by creating uncertainty in the market, which would cut into sales.

Anglo Irish is selling the debt as part of a massive restructuring to exit the U.S. commercial real estate market. The lender is selling its entire $9.5 billion American commercial loan portfolio, and the Apthorp loan sale is part of a $5 billion sale of nonperforming and sub-performing loans to Loan Star. [more]

Attorney General Eric Schneiderman and the Apthorp

The developers of the Apthorp condominium, who filed suit earlier this month to block Anglo Irish Bank from selling the property’s $385 million mortgage loan, previously told state regulators that the potential loan sale would have no impact on them or the property, according to documents obtained by The Real Deal.

In February, the Apthorp developers — led by Africa Israel — disclosed in a filing with Attorney General Eric Schneiderman that it was “not in default” on the mortgage, but there was a possibility that Anglo Irish “may sell the loan, however this would have no effect on the sponsor or the building.”

That disclosure stands in stark contrast to the language used by the developers in Sept. 12 suit against Anglo Irish, where they warned that the sale would violate a 2010 loan restructuring deal and would potentially harm the conversion. [more]

Young Hollywood actress Dakota Fanning, known for her roles in “I am Sam,” “Man on Fire” and the “Twilight” saga, has just moved into a two-bedroom rental apartment at the Spring building at 225 Lafayette Street in preparation for beginning her studies at New York University, the Post reported.

Fanning wouldn’t be the first celebrity to pick the 1924 Beaux Arts building, also known as 60 Spring Street, as her home. Keith Richards’ daughter Theodora Richards, singer John Mayer and film director Wes Anderson are all said to live in the building.

The property, originally constructed to house the East River Savings Bank, was converted to a 40-unit condominium by Africa Israel in 2004.
[more]

From left: Fashion designer Tommy Hilfiger, Lev Leviev Africa Israel chairman and 5 Madison

Tommy Hilfiger’s plan to buy the Clock Tower building for $170 million
has fallen apart because he has been unable to secure financing, Crain’s
reported. Together with real estate investment company JSR, he had
intended to purchase the property at 5 Madison Avenue between 23rd and 24th streets from Africa
Israel, and convert it in to a luxury hotel and condominium. JSR Capital said there were other reasons apart from financing
problems for why the deal fell apart. “Virtually everyone in the real
estate business has looked at Clock Tower as a hotel, residential,
and/or office,” said Ari Schwebel, vice president of operations at JSR
Capital. “Some of those were even all-cash buyers. There are reasons
not one of them has closed on the building, and it isn’t about
financing.” [more]

A fresh dispute is heating up for control of 103-year old landmark property the Apthorp, the Wall Street Journal reported. Developer Africa Israel USA and the building’s other owners are threatening to exercise a right in their loan agreement to block a sale of the $260 million mortgage on the property by Anglo Irish Bank to Lone Star Funds.
Private equity firms Lone Star, Wells Fargo and JPMorgan Chase triumphed in a battle for Anglo Irish’s $9.5 billion portfolio of U.S. commercial real estate loans last month. Lone Star took pools of non-performing and sub-performing loans worth around $5 billion, including the Apthorp mortgage.

The ownership is preparing to take legal action, the Journal said, but the matter may still be worked out. [more]