Hypo sues Related for $194M in NY court over Colorado resort

TRD New York /
Jul.July 13, 2010 04:30 PM

German lender Hypo Real Estate Capital has filed suit against Related
Cos. for a $194 million judgment after the Manhattan-based developer
allegedly defaulted on its long-delayed resort project in Snowmass
Village, Colo., at Aspen.

The lawsuit, filed Friday in New York State Supreme Court, names
Related and Patrick Smith, former president of Related Westpac, and
former president of San Luis Obispo, Calif.-based Westpac Investments,
which developed Snowmass under a joint venture with Related. The 1
million-square-foot project was to include 600 luxury residential
units, shopping, restaurants and other amenities.

The suit alleges that Hypo loaned $520 million in March 2007 for land
and the construction of the base village and that affiliates of the
developer guaranteed part of the principal. Hypo alleges that it
accelerated the loan July 6 following a series of defaults by the borrower and that $386 million came due immediately.

According to the suit, the developers signed guarantees for Phase III
payment advances for $37.5 million and $160.7 million, for a total of
$198.2 million. The lender is demanding a judgment amount of $194.7

Attorney Celia Barenholtz of Cooley, representing Hypo, was not
immediately available for comment. Neither Related officials nor Smith
were immediately available for comment.

Related Articles

(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

Clockwise from top left: 522 West 29th Street, 40 East 75th Street (center), 820 Fifth Avenue, 54 Thompson Street and 220 Central Park South 

These were the five priciest residential listings in NYC last week

A rent-stabilized portfolio in Rego Park, Queens, that sold at a 38 percent discount in November

Managing the rent law aftershocks

Faith Hope Consolo (Credit: Getty Images)

Kept secret by Faith Hope Consolo, brothers probe late broker’s will

Baha Nabulsi's Facebook post

An eXp agent made a thoughtless joke after Kobe Bryant’s death. She was fired

Clockwise from left: AC Hotel Midtown Miami, E11even and the Gabriel Miami (Credit: iStock, Wikipedia)

$1K a night, easy: South Florida hotels score high rates for Super Bowl LIV