William Procida and a rendering of Five Franklin Place

The $40 million mortgage on the stalled Tribeca condominium project Five Franklin Place has been yanked off the auction block, according to Crain’s, after a foreign investor inked a deal to buy the note. The condo’s site, at 369-371 Broadway between White and Franklin streets, was considered one of the last few remaining development sites in the neighborhood. William Procida, president of Procida Advisors, which was named an advisor on the note in May, said that the buyer “hit a number that is satisfactory and fair” and will pay all cash. [more]

Real estate and investment advisory firm William Procida, Inc. has been named the advisor on a $28.25 million mortgage loan for an unnamed lender at Five Franklin Place, a 55-unit condominium at 369-371 Broadway in Tribeca developed by Sleepy Hudson LLC. The firm’s head, Billy Procida, said that his company often becomes involved in “complicated transactions” such as this, providing value analysis and asset management on loans. “I’m a bankruptcy specialist, I’m a contractor… my specialty is basically getting money back for people,” Procida said. TRD

Tribeca has transformed over the past five years, going from a commercial warehousing district to a hip neighborhood populated by celebrities. But the neighborhood’s boom has made its decline during the recession that much steeper. Several projects are stalled, including Five Franklin Place, now just a construction site surrounded by a fence. The developers at 34 Leonard, a building that appears to have finished construction, have been unable to sell out the building. The sales office at 56 Leonard has closed. Some developers say they have seen recent signs of improvements in sales, but others say developers who built projects during the boom misunderstood what types of buildings people wanted in the neighborhood. The Real Deal looked at the downturn’s impact on Tribeca in the August issue. [more]

Former Corcoran sales director suing for commissions from Five Franklin, the Avery and Linden78

A former sales director for Corcoran Sunshine Marketing Group says she
has been stiffed for more than a quarter million dollars in residential
brokerage commissions for sales in high-profile developments including
Five Franklin, the Avery and Linden78, a court filing says. Broker Nancy Reese accuses Corcoran Sunshine and other Corcoran
entities of withholding at least $200,000 in commissions on closed
sales and says the developer of Linden78 owes her $70,000 in
commissions on canceled contracts, the court papers say. The lawsuit was filed at a time when experts believe more contracts
will be canceled as the condominium market continues to deteriorate.
But real estate lawyers said most contracts between brokerages and
developers include clauses that state that commissions are not due
until the title is passed to the buyer, so brokers are generally not
paid when a contract is canceled, attorney Adam Leitman Bailey, who was
not involved in the case, said. [more]