Moinian hit with foreclosure at 72 Madison

New York /
Nov.November 15, 2010 09:07 AM

Even as Joseph Moinian attempts in court today to stave off an attempt by the Related Companies to wrest control of 3 Columbus Circle, the developer is battling on another front at 72 Madison Avenue, which has just been hit with a foreclosure lawsuit, too. Alleging that Moinian missed multiple payments on his $22 million mortgage there, creditors filed to take back the 12-story office building. Moinian took out the mortgage in 2007, but ran into trouble when the economy worsened, cutting into his rental income at the property. While he ultimately did make the $1.4 million worth of late payments on the loan, special servicer CW Capital said the developer has not ponied up $200,000 in penalties — which Moinian’s attorneys have dismissed as “nothing short of price gouging and economic extortion.” CW was also the special servicer on the defaulted debt at 3 Columbus Circle, which it sold to Related earlier this year in a move that Moinian has called underhanded. The amount of that mortgage is in question — Moinian says it is $250 million, while Related says it is $310 million — and a state Supreme Court judge will hear arguments today about how much Moinian needs to pay off. [WSJ]


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