Davis hit with $17M suit at Kean site

New York /
Nov.November 18, 2009 02:08 PM

Davis Development Holdings, led by investor Trevor Davis, is facing a $17 million foreclosure lawsuit from Manhattan-based Ark Real Estate Partners after defaulting on his Upper East Side condominium site at Lexington and 65th Street.

Davis, the former development partner of RFR Holding’s Aby Rosen and Michael Fuchs, missed a $94,800 mortgage payment in October and fell behind on payments to MRC Contracting, according to the suit.

The lender is now demanding a total of $19.5 million, which includes outstanding interest, principal and late charges. The lender said it reserved the right to appoint a receiver to take over the project, according to the suit, filed Oct. 26, in New York State Supreme Court.

Davis originally acquired the properties at 859 and 861-863 Lexington Avenue for a total of $23 million from artist and jewelry designer Barry Kieselstein-Cord, according to city financial records. The purchases included air rights from the Caravan Institute at 132 East 65th Street.

The deal was considered controversial as local preservationists fought to preserve the historic site known as the Kean Residence, at 861-863 Lexington Avenue.

The Ark Investment Partners Web site describes the planned site as a “65,900-square-foot mixed-use development project” that includes 25 luxury condo units, 5,908 square feet of retail space and 2,000 square feet for storage. The project was to be called the Honore, according to an August posting on Curbed.com.

Despite the foreclosure suit, Davis said he plans to work out a deal and move forward with the project.

“The project on 65th Street is going ahead,” said Davis in an e-mailed statement. “Construction is underway. I’m in the process of working things out and negotiating with the lender in this difficult environment.”

Attorneys for the lender were not immediately available. Friends of the Upper East Side Historic Districts, which opposed the demolition of the site, were not immediately available for comment.


Related Articles

arrow_forward_ios
Reza Merchant and 555 Broadway (Google Maps, LinkedIn)
The Collective unloads Williamsburg dev site to avoid foreclosure
The Collective unloads Williamsburg dev site to avoid foreclosure
PS 64 at 605 East 9th St and MRC’s Josh Zegen (Google Maps, LinkedIn)
East Village’s languishing PS 64 nears foreclosure
East Village’s languishing PS 64 nears foreclosure
1107 Fifth Avenue and Richard Eisner (CityRealty, The New Jewish Home)
EisnerAmper co-founder sells Carnegie Hill co-op for $35M
EisnerAmper co-founder sells Carnegie Hill co-op for $35M
The property on 73rd Street formerly owned by Grace Kelly. (Getty, StreetEasy)
UES townhouse rumored to have been owned by Grace Kelly sells for $25M
UES townhouse rumored to have been owned by Grace Kelly sells for $25M
(Illustration by The Real Deal)
More than 14K LI residents in mortgage delinquency
More than 14K LI residents in mortgage delinquency
From left: Gary M. Tischler, founder and managing partner, Vanbarton Group; Eugene (Gene) Kohn, chairman, KPF (Getty Images, KPF, Google Maps/Illustration by Steven Dilakian for The Real Deal)
Vanbarton quietly taps KPF as NoMad tower architect
Vanbarton quietly taps KPF as NoMad tower architect
Carmel Partners picks up UES dev site
Carmel Partners picks up UES dev site
Carmel Partners picks up UES dev site
Miki Naftali and (from left) The Bellemont, The Benson and 200 East 83rd
Naftali is big winner in Upper East Side condo comeback
Naftali is big winner in Upper East Side condo comeback
arrow_forward_ios

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

Loading...