From left: Sciame Development CEO Robert Sciame, 72 Wall Street (credit: PropertyShark) and 70 Pine Street

Korea’s Kumho Investment Bank is facing litigation from a former developer of 70 Pine Street, in a battle that could threaten the scheduled sale of the building tomorrow.

Sciame Development filed a $7.7 million suit in state Supreme Court Dec. 19, alleging breach of contract after KIB hired it to take over as developer of the Pine Street project, at the former AIG headquarters, from Youngwoo & Associates, but failed to pay the company millions of dollars after deciding in June to sell the property to a partnership that included Ronnie Bruckner and Metro Loft Management, which is led by Nathan Berman.

Sciame asked for a temporary restraining order that would withhold $7.7 million in proceeds from the sale, scheduled to close tomorrow. [more]

70 Pine St, Young Woo of Youngwoo & Associates

As 70 Pine Street heads to the Landmarks Preservation Commission for recognition of its historic past, the future of the 66-story Art Deco skyscraper is up in the air. According to the Post, a plan to convert the former American International Group building’s upper portion into high-end condominiums while keeping the lower portion of the building as offices has been scrapped by the new owners of the tower, who purchased it, along with the adjacent 72 Wall Street, for $150 million from American International Group in 2009. Those owners are a group led by Korea’s Kumho Investment Bank — not, as previously reported, New York developer Young Woo, of Youngwoo & Associates, who was previously believed to have bought the properties with some equity from KIB. In fact, KIB now says its group owns 100 percent of 70 Pine Street and that Woo is “just part of the [group of] advisers” created to manage the building. 1 Comment

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When the AIG headquarters at 72 Wall Street was sold last Wednesday, a new baseline for Class B office space Downtown of $107 per square foot was set. Youngwoo & Associates and Kumho Investment Bank bought the space for $150 million, the New York Post reported. AIG has 18 months to move from 72 Wall Street to the Goldman Sachs space at 180 Maiden Lane. Goldman, which has already collected $20.5 million in rent from AIG for the space, will collect another $52.8 million before the move is completed. Joseph Moinian, of the Moinian Group, is currently suing Goldman Sachs for $175 million, arguing that Goldman is supposed to pay him 50 percent of anything the company makes on the 180 Maiden Lane sublease. His suit claims that Goldman had allowed AIG to lease the space at far below market value.

Youngwoo & Associates and Kumho Investment Bank have agreed to purchase two buildings owned by American International Group, the 70 Pine Street headquarters, which could receive a landmark designation, and adjacent 72 Wall Street. The two Financial District buildings have a combined 1.4 million square feet of rentable space. The sale went into contract last week, according to a press release from CB Richard Ellis, which arranged the sale. The sale price was not disclosed. TRD [more]