Leviev under fire by investors at Apthorp
September 25, 2009 05:30PM By David Jones
Lev Leviev, the Apthorp
Israeli billionaire Lev Leviev's Africa Israel Group is feeling the heat at the controversial Apthorp on the Upper West Side, as rival investors in the project are raising questions about the business plan and what they say is a lack of transparency at the troubled project.
Angry investors claim that Africa Israel Group and managing agent the Feil Organization have refused repeated requests for information about sales activity and other relevant data, but made a recent capital call for $2.1 million to fund an interest shortfall.
"I personally have asked for -- and I believe others have asked for -- the financial information that would justify the capital calls," said one Manhattan-based investor who asked not to be identified. "I don't know how they're going to meet all their obligations under the condominium plan."
Africa Israel and Broadwall Management, a subsidiary of Feil, were silent in recent months as they scrambled to sell 25 apartments -- or 15 percent -- at the Apthorp by the Sept. 15 deadline, the minimum number for the New York State Attorney General to approve the conversion.
Andrew Ratner, vice president of Broadwall Management, sent a letter to tenants on Sept. 2, declaring the plan effective, which means that the company signed sales contracts for more than 15 percent of the building's units.
The Sept. 2 letter included a copy of the sixth amendment to the Apthorp offering plan, which includes significant discounts to existing market-rate and rent-stabilized tenants who want to buy a new apartment. The Apthorp recently cut prices significantly to outsiders in order to lure potential buyers.
For example, a five-bedroom, 4,300-square-foot apartment that is listed for $12.2 million for non-tenant buyers, is being offered in as-is condition for $10.9 million and for $4.95 million to tenant purchasers, according to the amendment.
Several potential buyers and sources within the rival investor group have questioned whether the Apthorp was selling apartments to legitimate owner occupants, as a number of buyers have complained of calls not being returned and site visits not being offered by the broker, Prudential Douglas Elliman.
"They were certainly not terribly interested in me," said a wealthy West Coast investor who contacted the Apthorp and said he was willing to buy an apartment for cash. "There was no attempt to… show me anything."
According to Streeteasy.com, there are no listings under contract at the Apthorp. Dolly Lenz, vice chairman at Elliman, said she did not understand the question about the listings and forwarded calls to Stuart Saft, attorney for the Apthorp developers.
Saft, one of the city's top real estate lawyers, said that not only did the Apthorp reach 25 buyers before the Sept. 15 deadline, they are now up to 36 buyers, with tenants among them. Saft insists that all members of the Apthorp investment team, including the faction led by Maurice Mann, are being kept up to date with the plan.
"We've been meeting with representatives of all of the ownership groups and all of the lenders," Saft said. "We wanted to make sure everybody was on board with everything that is being done."
Saft said that the developers do not have any pre-approved financing lined up for borrowers, even though the Apthorp is only offering a mortgage contingency to tenants that choose to buy. Under current Fannie Mae guidelines, banks are asking for 70 percent of a condo's existing units to be under contract before it will approve mortgage loans for apartments.
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Comments
Anonymous
Aloha! yhr
Comment #1 Posted By: Anonymous 09/25/09
Anonymous
This is hillarious! You just can make stuff like this up.
Comment #2 Posted By: Anonymous 09/25/09
Anonymous
There are so many liars and thieves mentioned in this article, it makes Bernie Madoff seem like Mother Theresa. And anyone that sank a dime into this mindblowingly stupid debacle is obviously a complete and utter moron!
Comment #3 Posted By: Anonymous 09/25/09
Anonymous
Lenz never returned my call, so I never had a chance to buy. What is the story with these dopes?
Comment #4 Posted By: Anonymous 09/25/09
Anonymous
i am so happy that this is not happening another beautiful building getting a home depot special lol, look what happened to the plaza what a great building and the developers killed it it will never be the same , same goes for the apthorp!!!!!! Disgusting.
Comment #5 Posted By: Anonymous 09/25/09
Anonymous
HOME DEPOT IS A COMPLEMENT
Comment #6 Posted By: Anonymous 09/25/09
Anonymous
So, Dolly Lenz didn't return a phone call -- What else is new? I've been a broker for 15 years, and she's never returned ONE of my calls on any of her listings. She's been hauled up before the REBNY Ethics committee more than once, but this teflon-queen continues to get away with murder.
Comment #7 Posted By: Anonymous 09/25/09
Anonymous
Why does Lorber worship the ground this former fattie walks on?
Comment #8 Posted By: Anonymous 09/26/09
Anonymous
#5 the Drake hotel "great building a landmark" by Harry Macklowe.
Comment #9 Posted By: Anonymous 09/26/09
Anonymous
I am an investor in one of the other Apthorp "factions" and wish I could get my money back...As for Mann he has been screwed royally by Lev and from w2hat I hear Mr Ratner especially. Unfortunate for all...I just hope this deal makes it.
Comment #10 Posted By: Anonymous 09/26/09
Anonymous
DOLLY LENZ BACK STABBED ME TWICE AS A SALESPERSON WITH A COMPETING FIRM...NOT SURPRISED TO HEAR SHE HAS DONE IT AGAIN. ii I
Comment #11 Posted By: Anonymous 09/26/09
Anonymous
To #4 i call her for the last 3 years and never got a call back people like her need to be deported from NY and from the real estate business
Comment #12 Posted By: Anonymous 09/26/09
Anonymous
Is there any condo development disaster where Stuart Saft does not represent the owner (Rector Street, Sheffield, Apthorp). Well done Stuart, you know how to pick your clients...
Comment #13 Posted By: Anonymous 09/26/09
Anonymous
Let's get to the bottom of this: I'm a broker and I have a signed contract at The Apthorp, and I lost out on a 2nd deal because another buyer signed the contract before my buyer did. OK, so that's 2 Apthorp contracts signed that I'm certain of. Please would other brokers report here if they have signed Apthorp contracts, so that we can figure out how many are signed - thanks!
Comment #14 Posted By: Anonymous 09/26/09
Anonymous
Does anyone else find it disconcerting that Dolly Lenz "did not understand the question about the listings?" PATHETIC! The Ansonia blows the Apthorp out of the water!
Comment #15 Posted By: Anonymous 09/26/09
Anonymous
Let me get this right: The attorney is stating that he has 36 contracts with mortgage contingency clauses, but no one can get a mortgage because banks are requiring that 70% of the existing units must be in contract. This means that all of the contracts are not worth the paper they are written on!
Comment #16 Posted By: Anonymous 09/26/09
Anonymous
The New York State Attorney General, Andrew Cuomo, is the individual that declares the plan to be effective or not. Rattener has nothing to do with it!
Comment #17 Posted By: Anonymous 09/26/09
Anonymous
Not just sand in Israel #20. Ever been to Tel Aviv? It's like miami with better looking women and less trash. Check it out.
Comment #18 Posted By: Anonymous 09/26/09
Anonymous
RATNER THINKS HE IS GOD...IAM TOLD HE LIKES TO CONTROL AND INTIMIDATE PEOPLE....is that how he and miss lenz got their 36 contracts in 36 days?
Comment #19 Posted By: Anonymous 09/26/09
Anonymous
you got it wrong buddy....ratner is a rat. everyone hates him.he should be working in harlem not at the apthorp.
Comment #20 Posted By: Anonymous 09/26/09
Anonymous
They all deserve what ever they get. Anyone who does business with Dolly Lenz is out of their mind. She is the most willfully dishonest human being ever created. Why the NYS Atty. General or Secty. of State has not pulled her license by now, is a complete mystery.
Comment #21 Posted By: Anonymous 09/27/09
Anonymous
What is wrong with you people? Why such hostility? I will never understand why people are happy when others struggle.
Comment #22 Posted By: Anonymous 09/27/09
Anonymous
geez.... so some people do not like Dolly Lenz.. maybe it is because she gets the job done when other losers can not.. If she really was a bad as a few jealous colleagues say she would have lost her license. This all sounds like a bunch of sour grapes to me. get a life ..sell some apartments.. work..don't sit on your duffs criticizing someone that works harder than anyone i know.!!
Comment #23 Posted By: Anonymous 09/27/09
Anonymous
We are looking for information to back up the statements on comments #19 & #20. Please post anonymously. Thank you.
Comment #24 Posted By: Anonymous 09/28/09
Anonymous
honesty in real estate??? come on
Comment #25 Posted By: Anonymous 09/28/09
Anonymous
okay let's see they are offeringcurrent tenants a 60% discount ( assuming the tenat buys the renoveated version not as is) so the tenant signs at this 60 percent discount at 4.9M; then they offer a mortgage contingfency to the outsider paying 10.9 or 12.2 and they don't think they ar going to have appraisal issues that will activate the mortage contingency, they didn't think that one through. Now that's it's public about tenant's allegedly paying 60% lesss than asking price, do they really think an outsider is going to pay that much more. I think those 25 contracts are going to sit for a long, long time
Comment #26 Posted By: Anonymous 09/28/09
Anonymous
#23 - I guess you've never been Ms. Lenz's client. Why don't you interview some of her sellers whose apts have languished on the market for a year or more (her minimum exclusive contract requirement) due to her overpricing, her not bringing in clients of other agents, or simply her negligence. Her frequent assurances of "that last client intends to put in an offer" never materialize. I'd like to organize an SDL support group (Survivors of Dolly Lenz).
Comment #27 Posted By: Anonymous 09/28/09
Anonymous
As an underwriter of condo buildings in NY, I have turned down multiple financing requests from borrowers that were using Lenz as their marketing agent. Having been privy to her astonishing lack of insight to the market, I can honestly say that she should stick to marketing to her social strata and stop being a pinata impersonating a market pundit.
Comment #28 Posted By: Anonymous 09/28/09
Anonymous
One word to brokers: BOYCOTT. Do not stand for the abuses of this criminal (Lenz) anymore. Singlehandedly, this loser chick from Pelham Parkway has violated 100's and 100's of honest sellers, buyers and brokers. Some one needs to step up and indict this criminal before this business is utterly ruined for all of us. A furious broker
Comment #29 Posted By: Anonymous 09/28/09
Anonymous
why bother offering any of those rent stabbing cockroaches anything? Why would they pay 5 million dollars, let alone 500K dollars on an apartment that they are currently paying $1750/month on? 1750 wouldn't even cover the monthly maintenance and taxes.
Comment #30 Posted By: Anonymous 09/28/09
Anonymous
I brought my hi-end clients to the Apthorp. We were given a 4PM appointment, but we were made to wait nearly 40 minutes (in a room full of people who were also given 4PM appointments). There weren't enough chairs for everyone to sit on, and we weren't even offered a glass of water. Finally a group of green-as-grass kids (probably fresh out of college) appeared to take us around. The Dolce & Gabanna-dressed guy who showed us apts couldn't answer any of my client's questions - it was truly embarrassing.
Comment #31 Posted By: Anonymous 09/28/09
Anonymous
it will all become moot when the Appraisals ordered by the potential Lenders come in and make the LTV 200%
Comment #32 Posted By: Anonymous 09/28/09
Anonymous
Contracts.. why would anyone think the contracts that are signed are contingent to mortgage.. the atty general would not consider those 'valid' as there is an out .. all the contracts must be non-contingent..i am seriously concerned about the IQ level of this chat group.. let's just say for most agents and brokers all it took to get their licenses was '2wks and a pulse"
Comment #33 Posted By: Anonymous 09/28/09
Anonymous
No broker worth his salt would take clients to the Apthorp if he even suspected that his buyers required a financing contingency. Pah-leeze!
Comment #34 Posted By: Anonymous 09/28/09
Anonymous
#33 every contract has an out, the buyer simply walks from their deposit and doesn't close. Therefore, by your logic, even contracts not contingent on financing wouldn't be considered by the A/G because there is an "out".
Comment #35 Posted By: Anonymous 09/28/09
Anonymous
#35... get real.. every broker knows that buyers can walk away from deposit and on occassion do but most would not leave their money on the table. there is a big difference between a contract with mtg contignency and one without.. grow up and go back to school..by your logic no contract is binding so we might as well just close on the spot .. cash on barrell?? not bother with contracts all together?? please... your argument is juvenile and ridiculous.
Comment #36 Posted By: Anonymous 09/29/09
Anonymous
I am astonished at all the hateful and downright nasty comments on these sites.. Wretches under the cloak of anonymity cast the most awful aspersions. I challenge the next ‘anonymous’ to grow some balls and sign their name to their poison pen. If not crawl back under the rocks you came from. This is not just about Dolly but all the other agents I have seen slandered on these sites . Shame on you Real Deal for allowing this.
Comment #37 Posted By: Anonymous 09/29/09
Anonymous
Wow #36 you got some real pent-up anger control issues there. The commenter was simplying applying the same logic as when Jonathan Swift in a "Modest Proposal" suggetsd that the rich should eat the babies of the poor to solve the famine and over-popultion issues at once. All contracts have out clauses, ie if the developer has not completed and delivered the product by a given time (commonly referred to as a "drop dead" date) the buyer has the option of walking. Unless of course you are suggesting that the first 15% of contracts in any new devlopment/conversion are different from the subsequent 85% of the contracts in that the buyers in those first 15% have no option to get out of the contract, no relief whatsoever. Therefore, by your assertion the devloper can have the buyer tied up for years beyond any reasonable expectation. Your response shows a real lack of knowledge of the subject and the process and a real need for some therapy. Have a nice day.
Comment #38 Posted By: Anonymous 09/29/09
Anonymous
#38 the discussion was pertaining to mortgage contingency not the ability for buyer to back out of contract should developer not perform.. two different issues... your pseudo intellectual comment on Jonathon Swift gave me quite a chuckle.. don't strain the brain...as to therapy it sounds as if you have spent too much time on couch..
Comment #39 Posted By: Anonymous 09/29/09
Anonymous
Hiring Dolly Lenz to sell my apartment was a mistake, and I regret it. Like a damned fool, I let go of a perfectly good broker (who brought me 3 offers higher than what Lenz eventually sold it for) to hire her, because she told me her "name" would bring me a much higher price. She upped my asking price by $1M, and I ended up losing an entire year, during which time I found her to be narcissistic, negligent, & worthless.
Comment #40 Posted By: Anonymous 09/29/09
Anonymous
Why would anyone pay real money to buy into a construction site. It will be years of dust and dirt, and this is before the so-called buyers redecorate their apartments. Most of the contracts, if they have occurred, are to buyers who hope to flip their agreements or apartments in the near future. Even those getting the best prices, are becoming disillusioned, and they hope to make a quick profit and run.
Comment #41 Posted By: Anonymous 09/29/09
Anonymous
If Dolly Lenz is a bad as she appears to be, why aren't other agents bringing her up on ethics charges with the DOS? Why isn't Elliman being reported to the atty. general, and the DOS? It isn't going to stop until this occurs- if she's as bad as she sounds, get rid of her, like anywhere else would- don't let up with legitimate claims reported, until she's GONE.
Comment #42 Posted By: Anonymous 09/29/09
Anonymous
Actually #39 you need to go back and read the various discussions. It started with someone claiming that the A/G would not consider consider contracts with a mortgage contingency toward the 15% because the buyer would have an out it was not a discussion about mortgage contingencies. Given your incredibly low reading comprehension skills I'm surprised you got as far as you did in the various postings.
Comment #43 Posted By: Anonymous 09/29/09
Anonymous
There is much to be frustrated and angry about in the real estate market today....but it amazing how hateful we all are when we can post anonymously....
Comment #44 Posted By: Anonymous 09/29/09
Anonymous
I find it slightly ironic that #37 derides all of the anonymous posters, yet proceeds to post anonymously himself.
Comment #45 Posted By: Anonymous 10/01/09
Broker with a brain
Is it just me or did #26 totally misunderstand what the article states regarding the availability of a mortgage contingency. #26 posits that ultimately outsiders will back out of their contracts because their apartments won't appraise, they will be unable to secure financing and will have a mortgage contingency clause to rely upon. Isn't this the TOTAL opposite of what is reported above, which that insiders (and not outsiders) will be granted a mortgage contingency?
Comment #46 Posted By: Broker with a brain 10/01/09
Anonymous
Only an idiot would buy into this lawsuit waiting to happen.
Comment #47 Posted By: Anonymous 10/10/09
Anonymous
Interesting that no one can figure out who really controls the building. The investors are listed in the AG filings as shells and the newspaper articles with regard to the owners do not match what the AG filings state. Are the original or new investors, or the lenders, in charge, or is it collaberative. Who knows. Maybe the AG should ask some questions.
Comment #48 Posted By: Anonymous 11/02/09