Sliver tower owner files for Chapter 11

August 04, 2011 09:14AM

New York City real estate company 785 Partners LLC, owner of 785 Eighth Avenue, has filed for Chapter 11 bankruptcy protection, Bloomberg News reported, citing assets and debt of $100 million to $500 million in documents filed yesterday in U.S. Bankruptcy Court.

The company’s 566-foot glass sliver tower at 48th Street, nicknamed the sliver tower, was co-developed by Esplanade Capital, led by Jay Eisenstadt and David Scharf, and designed by Ismael Leyva Architects.

The 43-story building has been frozen since last year while an $84 million foreclosure suit wound its way through the courts.

Investors Donald and Kevin O’Sullivan were named as the guarantors of $84 million in loans for the project, which was scheduled to include extended-stay housing under the BridgeStreet Worldwide hotel brand.

Last month, The Real Deal reported that Attorney General Eric Schneiderman has begun to issue subpoenas in an investigation into the financial collapse of the tower where the investors alleged their deposit funds were misappropriated by the developers.
[Bloomberg]