One Madison Park to get $40M infusion?

Continuum will foot the bill for a loan restructuring and finish up the project, if bankruptcy court gives the go-ahead

TRD New York /
Nov.November 19, 2010 02:53 PM
From left: One Madison Park and Ian Bruce Eichner

Developer Continuum Company is set to inject $40 million into the troubled One Madison Park residential condominium and finish up the project, after reaching a deal with developer Ira Shapiro and creditors.

The deal, which is contingent upon bankruptcy court approval, would fund the costs of a proposed restructuring on a loan from lender iStar. The lender gained control of the building from Shapiro’s Slazer Enterprises in April, after asserting that the builder had failed to pay it $12 million in interest between October 2009 and February 2010 and owed upwards of $200 million. IStar first filed to foreclose on the property in February.

The building, at 23 East 22nd Street between Park Avenue South and Broadway, is currently the target of pending involuntary chapter 7 bankruptcy petitions in court.

The agreement, announced today, would install Continuum Company Chairman and CEO Ian Bruce Eichner as developer of the project, under the limited partnership “New One Madison Park Member I,” upon the completion of the proposed restructuring. Continuum did not respond to a request for more information. Eichner is reportedly a buyer at the building.

In a written statement, Shapiro said he supported the tentative agreement.

“I couldn’t be more pleased that the product of our tireless efforts to restructure One Madison Park’s balance sheet is the contemplated $40 million infusion that will provide a direct benefit to stakeholders,” Shapiro said.

Shapiro could not be reached for further comment.

The 69-unit, 50-story building currently has 19 units in contract, according to Streeteasy.com.

As The Real Deal reported in January, Shapiro, along with co-developer Marc Jacobs, was sued by more than half a dozen individuals, who claimed that the developers borrowed money from them using units in One Madison as collateral. In March, Attorney General Andrew Cuomo ordered Jacobs and Shapiro to offer refunds to any buyers who hadn’t closed on their apartments, The Real Deal reported.

IStar declined to comment and Continuum Company did not respond to a request for comment.


Related Articles

arrow_forward_ios
Plaza Construction’s Richard Wood and Ian Bruce Eichner with 45 East 22nd Street (Courtesy StreetEasy, Plaza Construction)

Plaza Construction seeks to foreclose on Eichner’s Flatiron units

Plaza Construction seeks to foreclose on Eichner’s Flatiron units
Jay Sugarman (Credit: portfolio breakdown map courtesy of Safehold Inc.)

Safehold’s deal pipeline shrinks while incomes hold steady

Safehold’s deal pipeline shrinks while incomes hold steady
Jay Sugarman

Behind Safehold’s paydirt plan

Behind Safehold’s paydirt plan
Safehold’s Jay Sugarman and 685 Third Avenue (Credit: iStar and Google Maps)

Safehold finances 685 Third ground with $135M from John Hancock

Safehold finances 685 Third ground with $135M from John Hancock
Marc Jacobs and 68 Bethune Street (Credit: Jamie McCarthy/Getty Images, Serhant Team via Nest Seekers) 

Coronavirus chaos didn’t dampen luxury contract signings last week

Coronavirus chaos didn’t dampen luxury contract signings last week
From left: Safehold president & CIO Marcos Alvarado, Safehold chairman & CEO Jay Sugarman and 425 Park Avenue, the Alohilani Resort Waikiki Beach in Honolulu, 195 Broadway and 685 Third Avenue (Credit: Google Maps)

Safehold was top-performing REIT of 2019 and doesn’t own any buildings

Safehold was top-performing REIT of 2019 and doesn’t own any buildings
From left: A rendering of 425 Park Avenue, iStar CEO Jay Sugarman, and Nuveen managing director Nadir Settles (Credit: rendering via L&L Holding/Sugarman by Emily Assiran/Settles via Nuveen)

iStar-managed REIT signs $620M contract to buy ground lease at L&L’s 425 Park

iStar-managed REIT signs $620M contract to buy ground lease at L&L’s 425 Park
Westchester & Fairfield Cheat Sheet: White Plains developer heads to prison, Marc Jacobs buys in Rye, Tommy Mottola sells in Greenwich… & more

Westchester & Fairfield Cheat Sheet: White Plains developer heads to prison, Marc Jacobs buys in Rye, Tommy Mottola sells in Greenwich… & more

Westchester & Fairfield Cheat Sheet: White Plains developer heads to prison, Marc Jacobs buys in Rye, Tommy Mottola sells in Greenwich… & more
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...