From the April issue: A number of New York City developers put massive new condo projects on the market in the summer of 2008, expecting the high prices and speedy sales that had become the norm. But they were in for a nasty surprise. With the collapse of Lehman Brothers, the real estate boom ended in the blink of an eye. [more]
Posts Tagged ‘rector square’
New York Attorney General Eric Schneiderman won a major decision against developer Yair Levy, as a state Supreme Court judge upheld a 2011 decision that bans the developer from selling condos and co-ops statewide and requires him to pay $7.4 million for having raided the reserve fund at the Rector Square condominium.
Levy had sought to dismiss a June 2011 ruling by Judge Joan Lobis. Levy was found to have spent millions from the 304-unit Battery Park City condo conversion’s fund on personal and family expenses. [more]
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.
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]
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.
1. Related will complete condo conversion project at Rector Square
2. Poll reveals young New Yorkers may move due to money worries
3. Commercial real estate is killing small regional banks
4. International contemporary funiture fair opens this weekend at Jacob Javits Convention Center
5. Co-op at One Beekman Place asks $11 million
6. City Harvest leases Long Island City distribution center
7. Green start-ups may apply to test their products in city buildings
8. Two burger places open in Downtown Brooklyn
9. Gap’s Athleta inks lease on 1517 Third Avenue
10. Nieuw Amsterdam Plein and Pavilion, a plaza outside the Staten Island Ferry terminal, finally opens 402 years late
From left: Rector Square, YL Real Estate Developers’ Yair Levy and Justin Metz, a managing principal with Related Companies
[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]
A state Supreme Court judge ruled today that Attorney General Andrew Cuomo can proceed in his civil suit against developer Yair Levy, who is facing banishment from future condominium unit sales after he allegedly misappropriated millions of dollars from the Rector Square reserve fund.
Cuomo sued Levy, alleging that the man formerly known as the “condo king” illegally withdrew $1.6 million in reserve funds at the 303-unit building in Battery Park City, and signed over checks to family, while using the money to pay credit card bills at Macy’s and Verizon Wireless.
Anglo Irish Bank acquired unsold shares of Rector Square, the troubled Battery Park City condominium, during a public auction at the New York state Supreme Court this afternoon, with a winning bid of $82.75 million.
Anglo Irish, the senior lender at the 304-unit building at 225 Rector Place, plans to resell the building to new investors, according to the bank’s attorneys, who explained that the bank wanted to make sure the property had stable ownership going forward.
“The bank invested so much in [the building] that it’s interested in seeing that the building finds a good home,” said Herrick Feinstein attorney Chris Sullivan, who represented Anglo Irish in its foreclosure case against the property…. [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]
Sean FitzPatrick, former chairman of the Anglo Irish Bank, was arrested yesterday on charges of alleged financial fraud. FitzPatrick, one of Ireland’s most visible financial executives, has been accused of fiscal impropriety in the past. FitzPatrick left his post as Anglo Irish’s chairman in December 2008 amid allegations that he had concealed personal loans, valued at tens of millions of dollars, from shareholders. On this side of the Atlantic, Anglo Irish has made waves in the New York City real estate world. After buying big during the boom years, the bank saw its investments flounder in the financial downturn. In January 2009, the bank filed to foreclose on developer Yair Levy’s $165 million mortgage on Rector Square, a 304-unit residential development at 225 Rector Place in Battery Park City.
A New York State Supreme Court judge shut the door on developer Yair Levy in the highly publicized foreclosure at Battery Park City’s Rector Square condominium.
Judge Joan Madden awarded summary judgment this afternoon to Anglo Irish Bank, which filed to foreclose after Levy’s firm defaulted on a $165 million mortgage loan. Madden rejected Levy’s arguments that the bank subverted the project by cutting off funding, and noted numerous defaults by Levy’s YL Real Estate, including improper withdrawals from the emergency reserve fund and “questionable” requests for construction money.
“Anglo further alleges that at least one contractor has accused YL of pocketing some of the loan proceeds and that YL embezzled most of the tenant reserve funds,” Madden wrote in her decision.
Levy himself filed suit in state Supreme Court, alleging the bank forced the project into bankruptcy by shutting off his construction funds.
Levy was not immediately available for comment, nor was YL Real Estate attorney David Segal. Christopher Sullivan, an attorney representing Anglo Irish Bank, was also not immediately available…. [more]
Developer Yair Levy is facing a bevy of fiscal nightmares, including a $100 million suit from 45 apartment owners at a Battery Park City condo conversion filed last month, making him one of the most troubled developers in New York City. While once considered the “condo king” of the city, Levy’s YL Real Estate Developers has come unraveled by poor project choices, according to a Crain’s profile, including Rector Square and Park Columbus. But while some of Levy’s developments, including the foreclosed condo conversion project Sheffield57, have proven irksome for Levy, he contends that many others face similar woes. “Everybody is in trouble,” Levy said, attributing his problems to “too many condo projects at the same time when the market collapsed.”
A group of 45 unit owners at Rector Square condominium in Battery Park filed a $100 million lawsuit against developer Yair Levy, superbroker Michael Shvo and building manager Cooper Square Realty, alleging widespread fraud, negligence and misrepresentation. According to the suit filed yesterday in New York State Supreme Court, Levy, the owner of YL Real Estate Developers, defaulted on the mortgage loan with Anglo Irish Bank, failed to complete construction of the building, converted reserve funds for his own use and failed to make PILOT payments to the Battery Park City Authority. The plaintiffs claim the sponsor and broker misrepresented the quality of the building to potential purchasers. “Instead of a building of their dreams they bought into a building of nightmares,” said Marc Held, attorney for the unit owners. Levy also allegedly sold a block of 15 apartments to an Italian university for use as dorm rooms for exchange students and rented out apartments to Marriott for use as extended-stay hotels, violating local zoning laws…. [more]
Anglo Irish Bank filed a motion in New York State Supreme Court earlier this month to complete foreclosure proceedings against Rector Square developer Yair Levy and place the troubled Battery Park condominium conversion on the auction block for sale to a new investor. Anglo Irish originally filed suit in February alleging that Levy defaulted on a $165 million mortgage loan to convert the 304-unit rental building at 225 Rector Place, and failed to pay millions of dollars in contractor’s fees, common charges and PILOT payments to the Battery Park City Authority, which controls the ground lease under most, if not all, Battery Park buildings. Levy later tried to preempt the foreclosure suit by filing a countersuit in Nassau County, where he resides, alleging that Anglo Irish forced his property into default by holding up construction dollars. That case was later consolidated into the foreclosure suit filed by Anglo Irish. More
Tensions have reached a fever pitch at the Rector Square, the
foreclosed Battery Park City condominium, as the court-appointed
receiver and Related threaten to sue a majority of the building’s unit
owners who are refusing to pay more than $300,000 in retroactive common
charges and PILOT payments. Related, the building’s new managing agent, warned in a letter obtained
by The Real Deal that the receiver, Manhattan-based trust attorney
Michael Miller, would be forced to file suit against more than 40
delinquent unit owners if they failed to pay thousands of dollars in
newly assessed charges…. [more]