Real estate investment firm Petra Capital Management is expected to take control of the unfinished Ismael Levya-designed condominium conversion in Murray Hill at 114 East 32nd Street at a foreclosure auction today, Crain’s reported. Petra loaned $95 million to developer and Harch Group founder Harry Jeremias for the conversion, but later filed to foreclose in 2009.
As The Real Deal previously reported, Jeremias, who is also president of PHH Realty, originally purchased the former office building from Parklex Associates in May 2006 for $53 million. He then borrowed $93.75 million from Petra Mortgage Capital in February 2007.
Todd Soloway, a partner at law firm Pryor Cashman, said it was likely that Petra would use its credit to bid on the project. The company has reportedly already hired Jones Lang LaSalle to market the building.
Jeremias is one of several developers who fell victim to the credit crunch. He faced a foreclosure suit for allegedly defaulting on a $55 million loan to develop a high-end condo at 15 Renwick Street in Soho. [Crain’s]