The Real Deal New York

Posts Tagged ‘esplanade capital’

  • Los Angeles- based CIM Group has officially taken control of an extended-stay hotel tower at 47 East 34th Street, according to public records filed with the city today.

    BridgeStreet Corporate Housing currently uses the building for extended-stay residences, though its $400,000-per-month lease is slated to expire on Dec. 31. CIM, which owned the defaulted note with a $93.2 million judgment, took control of the 36-story building for $54 million.

    IStar Financial sold CIM the $84 million senior mortgage debt this year, after a final judgment was issued against the previous owner Esplanade Capital, according to court records and financial documents obtained by The Real Deal. As previously reported, iStar retained an investment in the property, with a $20 million loan to CIM. … [more]

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    From left: David Scharf and Jay Eisenstadt and 47 East 34th Street (building credit: PropertyShark)
    Manhattan’s largest state court foreclosure auction of the year is set for later
    this month in Murray Hill. The auction is to sell the temporary-housing tower at
    47 East 34th Street where the California real estate investment firm CIM Group
    owns the defaulted note with a $93.2 million judgment.

    Project developer Esplanade Capital, whose principals are David Scharf and Jay
    Eisenstadt, lost control of the 36-story building with 110 units this May.

    CIM Group bought the loan from lender iStar Financial May 13 for an
    undisclosed amount following a final court judgment against Esplanade. A state court judge had placed it in the hands of a court-
    appointed receiver in March of last year.

    Although iStar sold the note in May, it kept an investment in the property, with a
    $20 million loan to CIM, city records show. … [more]

  • Sliver tower owner files for Chapter 11

    August 04, 2011 09:14AM

    New York City real estate company 785 Partners LLC, owner of 785 Eighth Avenue, has filed for Chapter 11 bankruptcy protection, Bloomberg News reported, citing assets and debt of $100 million to $500 million in documents filed yesterday in U.S. Bankruptcy Court.

    The company’s 566-foot glass sliver tower at 48th Street, nicknamed the sliver tower, was co-developed by Esplanade Capital, led by Jay Eisenstadt and David Scharf, and designed by Ismael Leyva Architects.

    The 43-story building has been frozen since last year while an $84 million foreclosure suit wound its way through the courts. … [more]

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    Eric Schneiderman and 306 West 48th Street

    Attorney General Eric Schneiderman has begun to issue subpoenas in an investigation into the collapse of the Sorrento New York, a 43-story luxury condominium tower where a group of Irish investors allege their deposit funds were misappropriated by the developers, The Real Deal has learned.

    The probe centers on whether developers, which include Esplanade Capital’s Jay Eisenstadt, and brothers Kevin and Donal O’Sullivan of Time Square Construction and Navillus Contracting, respectively, improperly co-mingled $17.1 million of deposit funds with operating money at the tower, which is at 306 West 48th Street, before a bulk purchase deal with Ireland-based Sorrento Asset Management, fell apart in 2009, according to sources familiar with the case. … [more]

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    CIM principal and co-founder Richard Ressler, 47 East 34th Street (source: PropertyShark) and iStar CEO Jay Sugarman

    Istar Financial has finalized a deal to sell the $84 million senior mortgage debt at 47 East 34th Street to CIM
    Group, after the court issued a final judgment against the previous borrowers Esplanade Capital, according
    to court records and financial documents obtained by The Real Deal.

    Documents filed with the city Department of Finance on Wednesday show that CIM Group acquired the
    loan from iStar on May 13, and court documents in Manhattan Supreme Court show that the Los Angeles-
    based firm has filed documents to replace iStar as the plaintiff if the foreclosure case.

    “My expectation is there will be an auction before the end of the summer,” said a source familiar with the
    legal proceedings. … [more]

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    From left: Esplanade’s David Scharf, iStar’s Jay Sugarman and 47 East 34th Street (building photo source: PropertyShark)

    CIM Group is in talks with Esplanade Capital and iStar Financial to buy 47 East 34th Street, the troubled mixed-use tower that is currently leased to corporate housing provider Bridgestreet Worldwide.

    Istar has been shopping the $84 million in debt on the foreclosed property for months and was engaged in talks with an undisclosed buyer in February,

    but that deal has since collapsed and the lender recently entered discussions with CIM while preparing to place the building on the auction block.

    CIM, the Los Angeles-based investment firm, led by founder Richard Ressler, has been on something of a buying spree in New York, scooping up the debt at two iStar projects, William Beaver House and Trump Soho. The firm would not divulge any details on these negotiations. … [more]

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    From left: Esplanade’s David Scharf, iStar’s Jay Sugarman and 47 East 34th Street (building photo source: PropertyShark)

    Esplanade Capital is in the final stages of a compromise deal to sell its embattled BridgeStreet hotel property at 47 East 34th Street, which iStar Financial foreclosed on in January.

    Manhattan-based iStar, which in 2010 rejected offers of more than $60 million to buy out the debt on the property, would likely take a slight haircut to pay off $84 million in loans and other fees, sources said. The property is currently licensed to BridgeStreet, but sources said the building, located between Park and Madison avenues, could be used for condominium units or a combination of uses. “Working closely with iStar, which has been diligent and extremely cooperative, we are now near a resolution that should benefit all parties,” David Scharf, managing member of Esplanade, said in an e-mailed statement. … [more]

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    Jay Sugarman, head of iStar, and 47 E. 34th St. (building photo: PropertyShark)

    A state Supreme Court judge late last month handed a major victory to iStar Financial in the lender’s foreclosure case against Esplanade Capital’s 36-story mixed-use hotel at 47 East 34th Street.

    Manhattan-based iStar filed to foreclose on the 36-story tower in March 2010 after the real estate developer defaulted on $76 million in loans.

    Esplanade, led by investors David Scharf and Jay Eisenstadt, countersued later that month alleging that iStar launched the foreclosure suit as part of a “predatory” deal with Dublin-based Sorrento Asset Management to operate the property under the BridgeStreet Corporate Housing brand and cut Esplanade out of the picture. … [more]

  • PB Capital, the American subsidiary of Deutsche Postbank, was granted a receiver last month to oversee Sorrento New York, a stalled 43-story condominium and extended-stay hotel that is the subject of an $84 million foreclosure suit. The Ismael Levya-designed tower, at 306 West 48th Street, was developed by Manhattan-based Esplanade Capital led by Jay Eisenstadt and David Scharf. Investors Donald and Kevin O‘Sullivan were named as the guarantors of $84 million in loans for the newly constructed project, which was scheduled to include extended-stay housing under the BridgeStreet Worldwide hotel brand. … [more]

  • 47 East 34th Street

    A state Supreme Court judge ruled that the receiver at a Midtown office
    complex must submit a lease agreement that would prevent BridgeStree … [more]


  • 47 East 34th Street and David Scharf (building photo source: PropertyShark)

    IStar Financial is being sued for $150 million by Manhattan-based Esplanade Capital, which claims the lender conspired with another investment partner to foreclose on its 36-story mixed-use building and allow BridgeStreet Corporate Housing to operate the site as an extended-stay hotel under a separate deal.
    The Manhattan-based lender previously filed suit to foreclose on $76.1 million in loans backed by the 110-unit building at 47 East 34th Street, which was being developed as an extended-stay property under the BridgeStreet name. Esplanade, operating through its 47 East 34 Partners affiliate, alleged that in 2007 it entered a deal with Istar to borrow $76.1 million in construction loans to develop the property. At the same time, it entered a “bulk-sale” agreement to sell the property for $96.7 million to one of its general partners, Dublin, Ireland-based Sorrento Asset Management. … [more]