The Alexico Group has reached out to Goldman Sachs for financing to buy back its mortgage debt on its Upper East Side co-op conversion at the Mark Hotel in an effort to pull the struggling property back above water, according to the Wall Street Journal. Alexico, which owes Anglo Irish Bank roughly $270 million, entered talks with Dune Real Estate Partners earlier this year about how it might restructure the loan, and the partnership is now negotiating with Goldman. Sales have been slow at the 83-year-old property at 25 East 77th Street, where prices range from $2 million to $60 million but just two units have sold thus far for a total of $15.7 million. Alexico’s original plan was to convert 42 of the hotel’s 160 units to luxury co-ops, through which it hoped to raise $308 million. The developer later scaled back the conversion to just 10 units, which were supposed to raise a combined $167 million, due to a lack of interest. Sources said Anglo Irish would be willing to accept an offer below $200 million to purge the debt from its portfolio. The lender also sold around $230 million in loans on Alexico’s Alex Hotel and Flatotel this year for roughly $180 million. [WSJ]

[more]

The Alex

The Alex, one of Alexico Group’s three distressed hotels in Manhattan,
is facing an $81.7 million foreclosure suit after An [more]

Louise Sunshine and the Mark

Anglo Irish New York is quietly selling loans on three upscale
hotels owned by Alexico Group totaling $350 million
to $400 million, industry sources told Crain’s. It was
unclear if Alexico had defaulted on one or more of the loans
associated with the properties, which are the Mark Hotel on East 77th
Street, the Alex Hotel on East 45th Street and the Flatotel
on West 52nd Street. But sources familiar with the deal said the
prospective buyers were only interested in the mortgages because they
hoped to eventually foreclose on the company. Alexico, where industry veteran Louise Sunshine is director of development, recently
invested at least $100 million into renovating the 16-story Mark, hotel. It planned to convert some suites into private
residences that it would sell to pay off debt, but fell short of the
cash it needed and borrowed $255 million from Anglo Irish. The other
hotels don’t appear to have the same issues as the Mark. However,
Alexico has had problems with some of its residential developments
such as the Laurel condos
on the Upper East Side, where buyers have filed lawsuits to break
contracts. [Crain's]

[more]

Louise Sunshine and the Mark

Anglo Irish New York is quietly selling loans on three upscale
hotels owned by Alexico Group totaling $350 million
to $400 million, industry sources told Crain’s. It was
unclear if Alexico had defaulted on one or more of the loans
associated with the properties, which are the Mark Hotel on East 77th
Street, the Alex Hotel on East 45th Street and the Flatotel
on West 52nd Street. But sources familiar with the deal said the
prospective buyers were only interested in the mortgages because they
hoped to eventually foreclose on the company. Alexico, where industry veteran Louise Sunshine is director of development, recently
invested at least $100 million into renovating the 16-story Mark, hotel. It planned to convert some suites into private
residences that it would sell to pay off debt, but fell short of the
cash it needed and borrowed $255 million from Anglo Irish. The other
hotels don’t appear to have the same issues as the Mark. However,
Alexico has had problems with some of its residential developments
such as the Laurel condos
on the Upper East Side, where buyers have filed lawsuits to break
contracts. [Crain's]

[more]

At least four buyers are trying to back out of their contracts at the Mark Hotel, the landmark property at 25 East 77th Street and Madison Avenue that reopened in January after a $200 million renovation, according to the Wall Street Journal. Developer Alexico Group had originally planned to finance the makeover by selling 42 suites in the high-end hotel and residences, but scaled back that offering to 10 units due to a lack of demand. Seven contracts have been signed, but only two have closed for a combined $15.7 million. [more]

The Mark Hotel, the Alexico Group’s high-end hotel and residences at 25 East 77th Street and Madison Avenue, has officially reopened after a $150 million renovation by interior designer Jacques Grange. Grange gave the Upper East Side property an art deco-style upgrade, complete with marble soaking tubs, Italian linens by Quagliotti and Bang Olufson audio systems. Rates for this weekend range from roughly $495 per night for a courtyard queen-sized room to $3,815 per night for the Mark’s “premier two-bedroom suite,” a 1,640-square foot room with Central Park and city views, according to the hotel’s Web site. The Mark has 118 rooms for guests and 42 co-op apartments. [Hotel Chatter]

Louise Sunshine, who recently helped her son, Sam Sunshine, sell her husband’s One Beacon Court apartment for close to its $6.7 million asking price, is moving to the Laurel at 400 East 67th Street. Her new $3.2 million condo, where her husband, medical consultant Martin Begun, is in contract, was developed by her own Alexico Group and marketed by Corcoran Sunshine Marketing. The home is a 2,000-square-foot three-bedroom in the 31-story green building. [Post]

From left: A rendering of the Oliver’s rooftop, images of the stalled project

Bank of America filed to foreclose on two loans totaling more than $30
million provided for the development of a rental project dubbed the
Oliver to be constructed by the luxury developer Alexico Group on the
East Side. The lawsuit describes one mortgage from 2007 as the fee acquisition
loan, valued at $28.32 million, and the second as a development rights
acquisition loan from 2008, valued at $2.3 million. Both loans were originally due November 2008, but the maturity date was
extended to May 1, 2009. The loans were not repaid by that time, and
the bank notified the borrowers that the loans were in default, the
suit filed in New York State Supreme Court August 13, says. The loans cover five mid-block lots from 951 to 961 First Avenue,
between 52nd and 53rd streets, although the planned 30-story
development is only on the three northernmost lots totaling 75 feet by
100 feet, court papers and property records show. The other two lots
are occupied by five-story apartment buildings. [more]

S. David Jagarnauth is seeking $184,000 plus interest from Paul Massey’s (right) Massey Knakal for the sale of 44-30 Macnish Street in Queens.

In three separate lawsuits filed last week, an independent broker is suing Massey Knakal Realty Services for $184,000; Goldman Sachs Group is seeking $3.1 million in lease commissions from the Moinian Group and contractor RCDolner claims Alexico Group owes it more than $600,000 in construction payments at the Oliver. Click here for the full story. [more]