The Real Deal New York

Madison Square Park area condo project debt goes for $20M

By David Jones | April 06, 2011 06:18PM

Victor Homes paid a discounted price of $20 million for the debt on investor Dan Shavolian’s defaulted hotel-condominium project near Madison Square Park, and is planning to redevelop the site pending a courthouse auction scheduled for April 27 (note: correction appended).

Victor Homes acquired the debt, which is $32 million, on the 239 Fifth Avenue site from Inland Mortgage Capital following a March 21 judgment on the property, and plans to build a 48-unit condo, unless someone comes along and outbids them for the debt, according to

“It’s a great location north of Madison Square Park,” said Ran Korolik, vice president at Victor Homes. “A lot of the buildings in this area are conversions that command a lot of money.”

Inland Mortgage Capital filed to foreclose on the property in 2009 after Shavolian and Jack Hazan defaulted on $27.2 million in loans.

The acquisition is part of a major buying spree by Victor, a Wall Township, N.J.-based firm led by Moshe Shuster. Just last month the firm acquired a 12,500-square-foot lot at 524-532 West 29th Street in Chelsea for $12 million. The developer plans to convert that site into an 80- to 90-unit condo.

The firm previously built the Gramercy Starck condo at 340 East 23rd Street and developed the Lumiere, a 66-unit condo at 350 West 53rd Street.

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