BridgeStreet avoids eviction at 47 East 34th Street in Istar foreclosure case

By David Jones | July 23, 2010 03:00PM

A State Supreme Court judge ruled that the receiver at a Midtown office
complex must submit a lease agreement that would prevent BridgeStreet
Corporate Housing from being evicted at least through October.

Judge
James Yates ordered Michael Green, the receiver of 47 East 34th Street,
to submit a lease agreement with Bridgestreet, in which the corporate
housing provider would pay $350,000 per month in rent through the end
of October.

The deal would allow BridgeStreet to be removed as
defendant in a foreclosure case by iStar Financial against the
building’s landlord; however, the housing chain would face immediate
eviction if it fails to comply with the agreement.

BridgeStreet had been facing a July 26 deadline to avoid eviction.

The
lender previously filed suit to foreclose on the 36-story building,
alleging the developer, Esplanade Capital, defaulted on $76.1 million
in loans. Esplanade filed suit for $150 million in March, accusing iStar
of conspiring with another investment partner to foreclose on the
property and allow BridgeStreet to operate the site as an extended-stay
hotel.

BridgeStreet officials and lawyers for Esplanade Capital were not immediately available for comment.