29 West 35th Street faces foreclosure

New York /
Feb.February 24, 2010 01:25 PM

CW Capital Asset Management has filed a foreclosure suit against investor Paul Sohayegh for allegedly defaulting on a $29.2 million mortgage loan at 29 West 35th Street, a 12-story office tower in the Garment District.

According to the lawsuit filed Feb. 4 in New York State Supreme Court, investors failed to repay the loan when it came due in August 2009.

In 2007, Twin Holdings of Delaware and Herald Square of Delaware, which operated under the name Empire State Equities, acquired the 78,000-square-foot building for $30 million from NTD Building, when the property was 75 percent vacant. Sohayegh, a Brookville, N.Y.-based investor and principal of Manhattan-based Bravo Management, guaranteed repayment of the loan, according to the complaint.

Manhattan-based commercial brokerage Berko & Associates represented the buyer and the seller in the deal.

In July 2007, the loan was transferred from CW Capital Mortgage Securities to Citigroup Financial Products, which in May 2008, turned around and transferred the loan back to CW Capital, the complaint says.

CW Capital then split off 20 percent of the loan, and sold that portion to Cadim Note, a Canadian lender.

An August 2008 listing had the landlord offering office space for $42 a square foot. The landlord was also offering retail space for either showrooms or medical offices.

Manhattan-based brokerage Newmark Knight Frank filed suit Feb. 2 in state Supreme Court, alleging that Empire failed to pay $320,000 in commissions. Newmark said it was named an exclusive broker to lease the ninth and 12th floors of the building, and signed leases with five commercial tenants, including HealthMatters Communications, ePrize, Pennoni Engineering and Surveying, Warrior Fitness Boot Camp and Gospel Music Channel.

Jones Lang LaSalle also placed a lien on the building, according to Propertyshark.com. Records show a July 2009 lien for $79,061 from Staubach, which is owned by JLL. A spokesperson for JLL said the company was looking into the matter.

Sohayegh was not immediately available for comment.


Related Articles

arrow_forward_ios
From left: Starwood Capital’s Barry Sternlicht and Veracity Development’s Edmond Li along with 111 Mercer Street (Getty, Google Maps, Veracity Development)
Sternlicht’s LNR aims to foreclose on Veracity’s Soho condo
Sternlicht’s LNR aims to foreclose on Veracity’s Soho condo
Salim Assa with 15 West 55th Street
Troubled Midtown rental saga headed for a foreclosure finale
Troubled Midtown rental saga headed for a foreclosure finale
Brooklyn District Attorney Eric Gonzalez charges disbarred lawyer with deed theft of 10 Pleasant Place in Ocean Hill, 1429 East 100th Street in Canarsie and 1100 Sutter Avenue in East New York.
Disbarred lawyer charged in deed theft scheme — again
Disbarred lawyer charged in deed theft scheme — again
Leslie J. Garfield’s Thomas Wexler with 163 East 64th Street (163 East 64th Street, Getty, Leslie Garfield)
Renaissance-inspired townhouse faces foreclosure
Renaissance-inspired townhouse faces foreclosure
Sugar Hill Capital’s David Schwartz with 121 West 116th Street (TerraCRG, Google Maps, Getty)
Uptown landlord Sugar Hill Capital faces another foreclosure
Uptown landlord Sugar Hill Capital faces another foreclosure
Sharif El-Gamal and 45 Park Place (Photo Illustration by Steven Dilakian for The Real Deal with Getty, Williams New York)
El-Gamal’s 45 Park lender wants out
El-Gamal’s 45 Park lender wants out
One Vanderbilt SL Green’s Marc Holliday, Brookfield Properties’ Brian Kingston (Loopnet, Brookfield, SL Green, Getty)
Manhattan notches premium office deal record for 2022
Manhattan notches premium office deal record for 2022
2022-in-review climate-change foreclosures builders-remedy
These were The Real Deal staff’s favorite stories of the year
These were The Real Deal staff’s favorite stories of the year
arrow_forward_ios

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

Loading...