The Real Deal New York

Joint venture closes on foreclosed note at Jerermias’ Chelsea office building

January 16, 2012 05:30PM

A joint venture between Atlas Capital Group and GreenOaks Real Estate Partners has purchased the defaulted note on a recently redeveloped 172,000-square-foot Chelsea office property, Crain’s reported, and has brought in a new leasing team to attract tenants to the building.The Real Deal reported in November that Atlas Capital Group was preparing to buy the property, which was tied up in federal bankruptcy court.

The venture closed this past Friday on the loan at 218 West 18th Street for $60 million, said Andrew Cohen, a partner at Atlas. As The Real Deal previously reported, embattled developer and Harch Group founder Harry Jeremias, who purchased the building in 2007, had been struggling to avoid foreclosure for more than two years at the property, after defaulting on the $68 million loan he got from Bank of America.

CBRE Group’s Stephen Siegel and Peter Turchin have been selected to head up leasing at the building, which is currently 65 percent vacant, Crain’s said. [Crain’s]