Boymelgreen faces lawsuit over 20 Pine loan
June 09, 2009 02:00PM By David Jones
Shaya Boymelgreen is facing a lawsuit over 20 Pine.
Developer Shaya Boymelgreen is facing a lawsuit from Aristone Capital Funding after allegedly defaulting on a $3.2 million loan for Boymelgreen's former condominium project at 20 Pine Street in the Financial District.
Aristone, in a suit filed June 4 in New York State Supreme Court, alleges that Brooklyn-based Boymelgreen failed to repay the loan, missed a number of construction deadlines and failed to confirm whether he repaid the building's mortgage loan to Bank of America by October 2008.
The suit names Boymelgreen Family LLC as the borrower and Boymelgreen as the personal guarantor of the loan.
Records from the city Department of Finance show that in 2005, Bank of America lent $140 million to Boymelgreen and his investment partner Lev Leviev for the building.
In addition, Aristone alleges that Boymelgreen extended the maturity date of a mezzanine loan from Apollo Real Estate to April 1, 2009, without prior consent. City records show that Boymelgreen borrowed a $105 million mezzanine loan from Apollo.
Aristone is asking for repayment of the $3.2 million loan, unpaid interest of more than $471,000, nearly $204,000 in late charges, plus legal fees.
Richard Newman, an outside attorney for Boymelgreen, declined to comment. Boymelgreen company officials were not immediately available for comment.
The lawsuit comes four months after Africa Israel, led by Leviev, took control of the 409-unit property from Boymelgreen amid an uprising from condo owners.
At the time, about 50 owners hired attorney Adam Leitman Bailey to represent them and threatened litigation if common area construction was not completed. Bailey told The Real Deal yesterday that significant progress has been made at the building.
Africa Israel appointed a new managing director of sales and leasing and promised to finish construction of the building's common areas by June 1. Michael Shvo is the building's exclusive broker.
Africa Israel officials declined to comment.
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Comments
Anonymous
Bad news for Aristone bc they won't see a cent.
Comment #1 Posted By: Anonymous 06/09/09
Anonymous
wasnt there recently an article on here about aristone filing a suit against another borrower? im sure they are hurting big time!
Comment #2 Posted By: Anonymous 06/09/09
Anonymous
Aristone other suit was against Baruch Singer. How is it that people who post here have such insight into the finances of individual borrowers?
Comment #3 Posted By: Anonymous 06/09/09
DS
Easy, b/c they post Anonymously!
Comment #4 Posted By: DS 06/09/09
Anonymous
Oy oy oy. THe market going goy!
Comment #5 Posted By: Anonymous 06/10/09
Tarredandfeathered
I wish the evil grabby Boymelgreen nothing but ill
Comment #6 Posted By: Tarredandfeathered 06/10/09
Anonymous
This project was a mess from the start. The Architect had their top people working on this project. The problem was a weak general contractor did them in. The owner also did not follow the advice of the Architect who was trying to lead him in the right direction. With the fall of Wall Street this was the end. Hope all the consultant will get their money after working so hard to complete this project.
Comment #7 Posted By: Anonymous 06/10/09
Anonymous
> a weak general contractor did them in Boymelgreen didn't have a GC, they ran it themselves (I helped for a little while). It was Boymelgreen's short sightedness and inexperience as a CM that did them in. They thought they could take an 80 year old skyscraper and do a gut renovation cheaply and quickly. I guess actually building something is a little more complicated than lining up financing.
Comment #8 Posted By: Anonymous 06/10/09
Anonymous
This makes absolutely no sense, on a $240 mil plus deal, why would the subject of conversation be on a $3.2 mil loan default? If Apollo and Bank of America (Apollo has other dealings with Leviev and has been in legal disputes with him as well) have nothing to say, why would two billionaire investors/developers get themselves in trouble over a relatively small $600k outstanding loan payment? This simply doesn't add up....even if they are both having other money troubles, this would be their smallest issue.
Comment #9 Posted By: Anonymous 06/10/09
Anonymous
@ #10: Asbestos. Figures.
Comment #10 Posted By: Anonymous 06/10/09