Swig trying to sell loan at Sheffield57

Developer Kent Swig is racing to complete a deal to sell the senior
mezzanine debt at the Sheffield57 condominium to a team led by Fortress
Investment Group, amid a blockbuster derivative lawsuit by his fellow
investors that could affect a final agreement. Under the proposed deal, Guggenheim Structured Real Estate would sell
its debt in the building, which includes a senior mezzanine loan of $76
million, and a junior mortgage loan of about $2 million, sources said. The sources added that Swig and Guggenheim were looking to sell the debt
at 90 cents on the dollar, while most offers were coming in at 60 to 70
cents. The buyers would then foreclose on the note, take over the property,
and pour millions of dollars into the building to complete construction
and cover delinquent payments owed to numerous contractors. “The note’s in default,” said an executive familiar with the
negotiations, “but Guggenheim doesn’t have the [additional] money to
put into the deal that the property needs.” [more]