An investor group that included developer Yair Levy has officially closed on the $500 million sale of an office and retail complex 620 Sixth Avenue to RXR Realty on Tuesday, and the troubled investor deposited $8.1 million in proceeds into an escrow fund to repay his former Rector Square condominium. [more]
A state Supreme Court judge today agreed to lift a temporary restraining order on developer Yair Levy to allow the $500 million sale of 620 Sixth Avenue, pending the immediate deposit of about $8 million in proceeds into an escrow fund for his former Rector Square condominium project.
The sale of the 700,000-square-foot retail complex is scheduled to close on Friday, and funds will immediately be transferred to an escrow account, according to lawyers for the Battery Park City condo.
Judge Joan Lobis continued to block the sale or transfer of any additional assets from Levy or his family, however, which lawyers for the Battery Park City condo say was done to illegally circumvent a judgment after the troubled developer was banned from the real estate industry for raiding the Rector Square reserve fund.
[more]
Attorney General Eric SchneidermanFrom the September issue: When New York State Attorney General Eric Schneiderman took office earlier this year, some critics feared he would do more ideological grandstanding than consumer protection and reform.
After eight months on the job, the former Democratic state senator (and ex-deputy sheriff) appears to be winning over some skeptics while enraging others.
The relatively low-profile Schneiderman exploded into the national spotlight last month when he filed a last-minute motion to block a proposed $8.5 billion settlement between Bank of America and investors in 530 New York trusts represented by Bank of New York Mellon.
The blockbuster move alleged that Bank of New York effectively tried to carve out a sweetheart deal for itself at the expense of the investors it was supposed to be representing. [more]
Developer Yair Levy has filed to overturn the $7.4 million judgment and a banishment from selling real estate by Attorney General Eric Schneiderman, after a state Supreme Court judge ruled that he took millions of dollars from the Rector Square condominium reserve fund.
Supreme Court Judge Joan Lobis, in a June 22 ruling, found that Levy defrauded the Battery Park City condominium by failing to deposit millions of dollars into building’s reserve fund and then spending some of those funds on personal expenses, including charge cards and mobile phone accounts [more]
From left: Yair Levy, Rector Square (source: PropertyShark) and Attorney General Eric Schneiderman
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]
A state Supreme Court judge ruled that developer Yair Levy defrauded the Rector Square condominium
in Battery Park City and spent $1.6 million in reserve fund money on personal and other illegal expenses,
which could possibly lead him to being banned from the real estate business.
Former New York Attorney General Andrew Cuomo filed a massive $7.4 million civil suit against Levy in 2010
alleging Levy misappropriated the reserve fund money at the 303-unit tower, signing over checks to his
own family members and using the funds to pay credit card and cell phone bills.
[more]
1. Related will complete condo conversion project at Rector Square
[Crain's]
2. Poll reveals young New Yorkers may move due to money worries
[DNAinfo]
3. Commercial real estate is killing small regional banks
[CNN]
4. International contemporary funiture fair opens this weekend at Jacob Javits Convention Center
[NYDN]
5. Co-op at One Beekman Place asks $11 million
[Curbed]
6. City Harvest leases Long Island City distribution center
[Crain's]
7. Green start-ups may apply to test their products in city buildings
[Crain's]
8. Two burger places open in Downtown Brooklyn
[Brownstoner]
9. Gap’s Athleta inks lease on 1517 Third Avenue
[NYO]
10. Nieuw Amsterdam Plein and Pavilion, a plaza outside the Staten Island Ferry terminal, finally opens 402 years late
[Curbed]
[Updated: 11:53 a.m., Jan. 24, 2011] Related Cos. today closed the long-anticipated acquisition of Rector Square, the Battery Park City condominium that was foreclosed on by Anglo Irish Bank, for $82.8 million, The Real Deal has learned.
Anglo Irish bought the unsold shares of the condo at a November auction of the 304-unit building at 225 Rector Place for the same amount of money, and sold the property to Related, which had been managing the property for nearly one-and-a-half years after the lender filed to foreclose on former developer Yair Levy.
“Rector Square is an asset that we were very familiar with, having initially developed the property and later served as managing agent for the receiver,” said Justin Metz, managing principal at Related. “We look forward to bringing new resources to the development and maximizing value for both our partners and existing owners.” [more]
The Related Companies will take over the unsold units and commercial space at Yair Levy’s Rector Square condominium for $82.8 million next week, sources told Crain’s. Anglo Irish Bank, the project’s largest lender, took control of the property for the same price at a foreclosure auction in November in which Anglo, owed around $135 million, was the only bidder. Related has been widely expected to eventually take the reins as the company has been managing the Battery Park City property, at 225 Rector Place, under a receiver since last year. [more]
Embattled developer Yair Levy and his son-in-law Daniel Deutsch are facing a $20 million lawsuit from unit owners at the Rector Square condominium, alleging they failed to complete construction and pay common charges as well as illegally converted funds at the property, all before the building was foreclosed on by Anglo Irish Bank.
The suit, filed Dec. 13 in New York State Supreme Court, claims that residents of the 304-unit building, at 225 Rector Place, have been unable to refinance, sell or get approval for any financial transactions at the building due to Levy defaulting on nearly $165 million in loans at the building, which led to the 2009 foreclosure. [more]
