Levy sued to block Anglo foreclosure

TRD New York /
Feb.February 27, 2009 05:14 PM

Developer Yair Levy filed suit against Anglo Irish Bank seeking to block the lender from foreclosing on Rector Square, his struggling condominium in Battery Park City, according to court documents.

Levy alleged that Anglo Irish failed to comply with obligations under a September 2007 loan agreement, in which the Dublin-based bank agreed to lend $165 million towards the conversion of The 225 Rector Place apartment building.

The suit, filed on January 29 in New York State Supreme Court, asks for $23 million in damages and a preliminary injunction against the foreclosure. The suit names Anglo Irish, Fortress Credit Opportunities and Drawbridge Special Opportunities Fund, who were the plaintiffs in the foreclosure case.

The suit was filed less than two weeks before the February 9 foreclosure filing by Anglo Irish against Rector Square. For reasons that are unclear, Levy filed the Supreme Court suit in Nassau County, claiming jurisdiction because he lives in a $5.5 million mansion in Kings Point, N.Y.

Anglo Irish declined to comment on the case. Levy’s attorneys were not immediately available for comment.

Meanwhile, on Thursday afternoon the New York attorney general’s office met with Lower Manhattan officials as well as attorneys for tenants and unit owners at Rector Place. Ken Demario, chief of the attorney general’s real estate finance bureau, led a group of four officials from the office, which regulates co-op and condominium conversions.

“He sent a very unambiguous message that the rights of the tenants [and homeowners] are going to be protected,” said Michael Miller, a New York trust lawyer who was named receiver of the building earlier this week.

He also praised Anglo Irish Bank for giving him the resources to manage the property.

“They have been genuinely cooperative in helping me do some of the preliminary things to get the ball rolling,” he said.

Miller is still waiting to secure insurance for Rector Square, adding that the complexity of the case is making it very difficult and expensive to secure a policy. Receivers are required to obtain surety bonds and insurance to protect the property against theft or other damages.

Attorney Marc Held, who represents unit owners at Rector Square, said that existing unit owners may be eligible for restitution and abatement of some monthly charges.

“Those people have many rights,” Held said. “Those rights may include getting their contracts back and the refund on their [deposits].”

Officials at attorney general’s office were not immediately available for comment.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Bed Bath & Beyond CEO Mark Tritton (Getty)

Pandemic profits buoy Bed Bath & Beyond

Pandemic profits buoy Bed Bath & Beyond
US construction spending is up $37.8 billion year-to-date compared to 2019 (iStock)

Housing demand sent construction spending up in August

Housing demand sent construction spending up in August
Donald Trump with Trump Tower in New York, Trump International Hotel Las Vegas and Trump International Hotel & Tower in Chicago (Getty; Pixabay)

Here’s why Trump loves depreciation

Here’s why Trump loves depreciation
Kroll Bond Rating Agency founder Jules Kroll (Getty; iStock)

Kroll reaches $2M SEC settlement over CMBS, CLO ratings

Kroll reaches $2M SEC settlement over CMBS, CLO ratings
Spencer Rascoff of Pacaso (Getty; Unsplash)

Spencer Rascoff wants to democratize second homes

Spencer Rascoff wants to democratize second homes
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...