The transformation of the former Childs Restaurant in Coney Island into an amphitheater, a pet project of outgoing Beep Marty Markowitz, has received a key nod from the City Planning Commission. [more]
Posts Tagged ‘istar financial’
Judge Kevin Gross, in an opinion released yesterday, said the case involving the luxury tower at 23 East 22nd Street, is placing an untold burden on his courtroom and cited an inability and unwillingness of the various parties to resolve several key disputes in the bankruptcy. The decision forces part of the case to start from scratch in New York state court after 1.5 years in bankruptcy court in Delaware.
“These adversary proceedings are extremely contentious and there is minimal cooperation among the parties,” Gross wrote in his opinion. “It’s fair to say the parties won’t agree on what day it is.” [more]
A state court judge handed a victory to Durst Fetner Residential this week,
removing a nagging legal speed bump the developer was facing at its large
Herald Square site.
The legal cloud has hovered over the property at 855 Sixth Avenue since 2006,
when two real estate investors sued a group of developers led by Baruch Singer over a failed partnership bid to acquire a portion of the site.
Durst Fetner became involved in the dispute after it bought the defaulted note for about $104 million from iStar Financial and took title in December 2010 from owners Tessler Developments and the Chetrit Group.
A state Supreme Court judge has ordered developer Yair Levy to pay $7.4 million in restitution to the Rector Square condominium and permanently banned him from selling real estate in New York state.
Judge Joan Lobis found last month that Levy defrauded the Battery Park City condo conversion, spending millions of dollars in reserve fund money on illegal personal and general business expenses, including charge card accounts, mobile phone bills and writing checks to family members.
The judgment permanently bans Levy from selling condos or co-op projects in New York state, virtually ending a career lasting more than 30 years in the U.S…. [more]
Steve Ross is the latest developer angling for a piece of One Madison Park, the skinny glass condo at 23 East 22nd Street that’s been mired in lawsuits since its owners ran out of cash in 2009. According to the Wall Street Journal, Ross’ Related Companies is working on a bid with Amalgamated Bank, one of the project’s junior lenders, to wrest control of the property through a buyout of senior lender iStar Financial’s debt. The Amalgamated plan was revealed in yet another lawsuit filed yesterday by Ziel Feldman’s HFZ Capital, which is expected to submit an official rescue plan for One Madison to federal bankruptcy court in Delaware within days. … [more]
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]
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]
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]
IStar Financial, the battered, Manhattan-based commercial property lender that’s been attempting to stave off a bankruptcy filing in recent years, may actually succeed. According to the Wall Street Journal, the company has already managed to unload several assets at decent prices and as a result, has slashed its debt level by $3.7 billion over the past 12 months. IStar, whose shares have bounced back from below $1 last February to $8.20 yesterday, still has to refinance $2.2 billion in debt that’s due in June, however, and analysts say that will be no small feat…. [more]
William Beaver House, the André Balazs-designed Financial District condominium that was just bailed out by the Los Angeles-based CIM Group, is going partially rental under its new ownership.
The 333-unit tower, which had been facing a foreclosure lawsuit prior to the takeover, was part of a three-piece deal in which CIM agreed to buy the debt on two troubled Sapir Organization buildings (Trump Soho and Beaver House) and take an equity stake in another (11 Madison Avenue), sources said. As the Wall Street Journal reported earlier today, CIM purchased the loan on over 200 unsold condos at the Beaver House and subsequently took ownership through a deed-in-lieu of foreclosure.
As commercial real estate lender iStar Financial tries to restructure some of its $8.6 billion in debt, it may seek bankruptcy protection, after creditors blocked it from amending loans, company insiders told Bloomberg News. The company expects to meet with creditors next month to discuss a potential “pre-packaged bankruptcy,” which could occur sometime next year. New York-based iStar recently saw its shares plunge more than 25 percent, losing more than 90 percent of their value since 2007. The company, led by CEO Jay Sugarman, hired Lazard, and Kirkland & Ellis to advise them on the debt restructuring. Istar made loans on properties including the Trump Soho hotel-condominium in Lower Manhattan. Aside from bankruptcy, iStar is considering a proposal to extend maturities on its debt as well as a potential exchange offer, sources said. [Bloomberg via Crain's]
LNR Property, the commercial real estate company controlled by Cerberus Capital Management, has received a $417 million cash infusion from a group that includes Vornado Realty Trust, iStar Financial, Oaktree Capital Management and Cerberus, the company announced Friday. The new investments helped LNR, which is among the country’s largest servicers of commercial real estate loans, reduce its debt to $425 million from $1.3 billion. Steven Roth’s Vornado now has a 26.2 percent equity interest in LNR, which comes from a $116 million new cash investment, combined with a conversion of its $15 million mezzanine loan into equity, the New York-based REIT said. In a statement, LNR CEO Tom Hughes called the deal a “substantial new investment in LNR by our sponsor and four largest creditors” that will make LNR “well-positioned to capitalize on opportunities in the commercial real estate market.” TRD
Investor Mendel Mendlowits was allowed to regain control of his Upper
West Side rental complex after he refinanced the property in the middle
of a foreclosure suit from … [more]
Billionaire developer Tamir Sapir is facing a $130 million lawsuit from a fund controlled by the Blackstone Group, alleging he defaulted on a multi-million-dollar loan used to develop the William Beaver House condominium in the Financial District.
GSO Re Onshore, the fund managed by Blackstone subsidiary GSO Capital Partners, filed suit Monday against Sapir individually in New York State Supreme Court, seeking a judgment on the $66 million loan that he guaranteed and then failed to repay by the November 2009 maturity date.
“GSO RE would not have made the loan to SDS William Street absent Sapir’s personal and unconditional promise to repay the loan set forth in the guarantee,” wrote Kobre & Kim attorney Elizabeth Wolstein, who is representing the fund.
The lawsuit alleges that as of November 2009 Sapir owed $48.7 million in interest, on top of the $66 million in principal. Another $15.7 million in new interest is now due, resulting in the $130 million claim for summary judgment. … [more]
A state Supreme Court judge handed a victory to iStar Financial today by granting full authority to the interim receiver at the One Madison Park condominium, which is going through foreclosure proceedings. Judge James Yates ordered that attorney Jonathan Newman, who was appointed interim receiver earlier this month, be granted the authority to oversee the completion of One Madison Park. The move represents a significant setback to lead developer Ira Shapiro, who urged the judge to allow him to remain in control over the project, which descended into a bitter split with his development partner Marc Jacobs, and an investigation by the Rockland County District Attorney. “They’re no longer in control of the process,” said Matthew Parrott, attorney for iStar. “The custody and control of the building is in possession of Mr. Newman.” A written order is expected to be issued Monday, Parrott said. Burton Dorfman, the attorney for Shapiro, praised the judge’s ruling, and noted that the developer will still be involved with marketing and completing the 69-unit building in consultation with the receiver. Lawyers said that sales will not resume until Attorney General Andrew Cuomo’s office lifts the ban he imposed more than a month ago. On March 12, Cuomo ordered the developers to refund money to buyers after iStar filed to foreclose and dozens of lawsuits were filed claiming that the developers defaulted on tens of millions of dollars in personal loans used to fund overhead costs at the condo. … [more]
Lender iStar Financial has told a state Supreme Court judge that it would fund the remaining construction at the One Madison Park condominium if the court-appointed receiver is granted expanded powers since it says the developer could not be trusted to complete the project. (Note: correction appended)
The remaining construction includes finishing the lobby, an indoor pool, fitness center, and other work to get temporary certificates of occupancy on the upper floors of the 50-story tower. The lender urged Judge James Yates to allow Jonathan Newman, the newly appointed interim receiver, additional powers to oversee the building amid concerns that the current developers, led by Slazer Enterprises president Ira Shapiro, have not fully accounted for millions in missing funds or resolved other problems…. [more]
A state Supreme Court judge has named veteran real estate attorney Jonathan Newman as interim receiver of the controversial One Madison Park condominium, which is currently facing a foreclosure lawsuit by iStar Financial.
Newman, a partner at Newman Ferrara, was granted limited rights to oversee the project, including the collection of common charges and sales proceeds, however Judge James Yates allowed lead developer, Ira Shapiro, to continue sales at the 23 East 22nd Street property, at least until a number of legal issues are sorted out.
Yesterday’s move represents a partial victory for Shapiro, the president of Slazer Enterprises, who was facing allegations of forgery by his development partner Marc Jacobs and claims by the lender that millions of dollars in borrowed money was unaccounted for…. [more]
A 16-unit luxury co-op building at 34 Leonard Street in Tribeca is hitting the auction block May 5, according to Crain’s, a year after developer R Squared defaulted on its $37.5 million mortgage and saw lender iStar Financial foreclose on the property. Although the property’s conversion to co-op was considered a success, the developers’ timing was off, placing the units on the market in fall 2007, just a short while before the recession hit. The R Squared development team has yet to comment on the auction proceedings.
Despite the all-time high delinquency rates seen among commercial mortgages, more lenders are showing optimism toward the commercial mortgage-backed securities market, and are gingerly buying up shares in the real estate investment trusts that own those loans, according to the Wall Street Journal. And their positive outlook might be justified — overall, REITs are up about 16.7 percent so far this year and some commercial-mortgage REITs, like iStar Financial and Arbor Realty Trust have made strides as well, up 140 percent and 113 percent so far this year, respectively, according to the Wall Street Journal. But Jason Yablon, a vice president with investment firm Cohen & Steers, said that the positive momentum needs to be taken with a grain of salt. “Because the stock has been beaten down, any incremental good news [about] the financing environment is going to make the stock move a lot,” Yablon said.
Lawyers for iStar Financial claim that the lender never received millions
of dollars from apartment sales prior to the foreclosure filing at One
Madison Park condominium, according to court documents obtained by The
Real Deal. Lawyers for iStar faced off against counsel for the developer in a March 23
hearing before state Supreme Court Judge Eileen Rakower, who heard
arguments about the lender’s request for a court-appointed receiver. Meister Seelig partner Stephen Meister, an attorney representing the developer, said he was not aware of any allegations of missing funds. “So many of them are completely baseless and untrue that it’s really not
a good idea to rely on these unsupported allegations,” Meister told The
Real Deal…. [more]