Mendlowits regains control of UWS complex

By David Jones | July 09, 2010 03:00PM

Investor Mendel Mendlowits was allowed to regain control of his Upper
West Side rental complex after he refinanced the property in the middle
of a foreclosure suit from iStar Financial, according to court
documents and legal sources.

State Supreme Court Judge James Yates issued an order  discharging
Peter Weiss of Manhattan-based property management firm Walter &
Samuels, as court-appointed receiver and transferring the 134-unit
tenement complex, at 201 West 92nd Street and 200 West 93rd Street,
back to Mendlowits.

“iStar Financial and 92 Equities have entered into a loan
transaction that dispenses with any further need for the receiver to
perform the duties delegated to him or to exercise the powers granted
to him pursuant to The Order Previously Entered By This Court,” wrote
Yates, in his July 1 order.

In 2008, Mendlowits acquired the building from developer Kent Swig in a
distressed sale, after iStar filed suit to foreclose on the building.
Swig, along with investment partners Yair Levy and Charles Dayan, were
unable to build additional units on the roof of the property and covert
it into a condominium due to fierce opposition from tenants and local
officials.

Mendlowits later defaulted on the building’s $46 million mortgage, and owed the bank $53 million, when adding interest, fees and other expenses. 

Brooklyn-based
Noam is scheduled to take over management of the property, according to
court documents. It is not clear what Mendlowits plans to do with the
property, however numerous retail stores remain unrented.

Gary Stahl, attorney for Mendlowits and 92 Equities, was not
immediately available for comment. Mendlowits was not immediately
available for comment.