State Attorney General Cuomo has told the developers of the financially-troubled One Madison Park condo to offer refunds to any buyers that have not closed on their apartments

State Attorney General Andrew Cuomo’s office, which regulates the sale of condominiums in New York, has told the developers of the financially-troubled One Madison Park condominium to offer refunds to any buyers that have not closed on their apartments, The Real Deal has learned. Cuomo’s office forced the rescission offers after senior lender iStar Financial filed last month to foreclose on developers Ira Shapiro and Marc Jacobs for allegedly defaulting on five months of interest payments, pledging apartments without the bank’s permission and allowing the building loan to fall out of balance by $63.6 million, according to court documents and legal sources. Such a move would require the developers to refund deposits on more than 40 percent of the 69-unit tower at 23 East 22nd Street, as half of the units are under contract and a dozen of those contracts have closed, according to Department of Finance records.
“[The AG stated its] position to the sponsor that it should offer rescission to those in contract,” said a NYS regulatory source familiar with the case. [more]