Istar bankruptcy could affect NY properties

The potential bankruptcy of iStar Financial could affect several New York properties where foreclosure proceedings are already underway, though experts say it’s too early to predict what may happen, according to Crain’s. As of December 2009, commercial real estate lender iStar had 11.7 percent of its loans concentrated in New York. Trump Soho New York, the hotel-condominium, is one of the projects financed by iStar. The company recently increased its mortgage by $20 million through a restructuring. iStar also has loans on some New York properties currently in foreclosure proceedings, according to data from Real Capital Analytics. Its $131 million loan for a development site at 855 Sixth Avenue is currently delinquent and foreclosure proceedings were recently initiated on an apartment building at One Madison Park at 20 East 23rd Street, owned by Slazer Enterprises, where iStar holds the $310 million delinquent mortgage. There’s also litigation underway related to its $76 million delinquent mortgage for an apartment building at 49 East 34th Street, owned by Esplanade Capital. [Crain’s]