Jasper’s fate uncertain as condo faces foreclosure

TRD NEW YORK /
Apr.April 16, 2009 02:58 PM
alternate textShaun Osher (left) and the Jasper


Developer Harry Jeremias is facing a foreclosure suit on the Jasper, the Ismael Levya-designed condominium conversion in Murray Hill, after defaulting on $83 million in loans and failing to complete the sale of the property to European investors.

Petra Capital Management on Monday filed to Have The New York State Supreme Court appoint a temporary receiver for the 80-unit building at 114 East 32nd Street. The move comes just one month after the real estate fund filed to foreclose on the condo.  

According to records filed with the Department of Finance, Jeremias, founder of the Harch Group and president of PHH Realty, originally acquired the former office building from Parklex Associates in May 2006 for $53 million. Jeremias, through a subsidiary firm called Morgan 32 Holding, borrowed $93.75 million from Petra Mortgage Capital in February 2007.

Jeremias and his two business partners at PHH, Henry Orlinsky of Teaneck, N.J., and Francisco Pujol of San Juan, Puerto Rico, took out personal guarantees to secure the loan for the project developed by PHH and Harch. Core Marketing Group was hired as the exclusive sales and marketing agent for the project.

As The Real Deal previously reported, the Jasper opened to great fanfare, with the developer claiming more than 40 contract signings in the first several months of sales and hosting a week-long open house in May 2008, which included free food from local Murray Hill restaurants, like Blue Smoke and Dos Caminos.

Prices ranged from $795,000 for a 591 square foot studio to $2.9 million for a 1,594-square-foot, three-bedroom unit, according to Streeteasy.com.

By November 2008, however, the New York Times reported that the conversion was halted, citing slow sales and millions of dollars in cost overruns. Harch Group announced that a European investment group would convert the building into a boutique hotel and that buyers would receive their deposits back. However, the deal with the European investors later fell through as well.

“I guess what you should say is the ultimate fate of the project lies with the bank now,” said Shaun Osher, CEO of Core Group Marketing, the project’s marketer. “I think the bank still feels that the best and highest use for this project will be as a condominium, not as a rental.”

Jeremias is still moving forward with plans for the Renwick, a 44-unit condominium at 15 Renwick Street in Soho.

Sara Polsky contributed to this report.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

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

Wendy Silverstein (Credit: Getty Images)

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

(Credit: iStock)

Stimulus deal buoys real estate stocks, but coronavirus maintains its grip

The Plaza Hotel, Sofitel New York at 45 West 44th Street and Le Bernardin at 155 West 51st Street (Credit: Yarl via Wikipedia Commons, Sofitel and Le Bernadin)

Mass layoffs claim jobs at the Plaza, Sofitel and Le Bernardin

Knotel CEO Amol Sarva 

Another huge round of layoffs for Knotel

The coronavirus could spark the conversion of New York’s office buildings into residential buildings

Could NY’s work from home moment fuel office-to-residential conversions?

Representative Kevin McCarthy and US Speaker of the House Nancy Pelosi show the $2 trillion stimulus bill (Credit: ALEX EDELMAN/AFP via Getty Images)

House passes $2 trillion stimulus package

arrow_forward_ios
Loading...