Chelsea townhouse developed by Corcoran agent faces foreclosure

Lender says developer owes $8.5 million

New York /
Mar.March 07, 2012 03:30 PM

A boutique townhouse building in Chelsea developed by the Corcoran Group’s Daren Herzberg and business partner Denny Herzberg, has found itself in financial difficulties four years after it first came on the market.

Herzberg Property Group, owned by the two Herzbergs, is facing foreclosure at the property, according to data from PropertyShark.com, having failed to sell the building both as separate units and later as a single-family home. SFR Venture, the successor to Lender Broadway Bank of Chicago, which folded in 2010, has filed a lis pendens, the first step in a foreclosure case, against the developer, claiming Herzberg owes it more than $8.5 million.

The development, which was originally designed by architects John Gordon and Cortney Walleston as a combination of two simplex units and one penthouse with a roof-top pool, launched sales in 2008. It later switched gears and came back on the market in 2010 as a single property, asking $22 million. It has since dropped its price to $16.7 million. Julie Pham, senior vice president at Corcoran, has the listing; she was not immediately available for comment.

Apollo Builders and Roebling Engineering, two firms that completed work at the townhouse, are also named as defendants in the foreclosure case.

“They are people who have also made claims against the building,” said Donald David, a commercial litigator at Akeman law firm, who represents SFR in the filing. “They named us because we are a party with interest in the property.”

Apollo, a New York-based construction firm, is also making claims in the case against Herzberg over claims it has not been paid for some of the work it provided at the property, David explained. The added claims could mean Herzberg would owe significantly more than the $8.5 million asked by SFR.

Herzberg, which dropped the price on the property 21 days ago to the current $16.7 million figure, and the other defendants in the suit will issue an answer to the complaint within coming weeks, David said.

The 10,000-square-foot mansion, which has six bedrooms all with en-suite full baths, has approximately 2,000 square feet of exterior space on multiple terraces, according to the listing for the building. It also boasts mod modern amenities like fully-integrated security, surround sound, climate control and keyless entry.

Dwell Magazine celebrated a new publisher six months ago with a coming-out party at the townhouse.

Herzberg was not immediately available for comment.


Related Articles

arrow_forward_ios
(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Hudson Yards megadevelopment inspires a new line of sex toys
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio
Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
Joe Sitt and Charles Scribner’s Sons Building in Midtown (Thor, Google Maps)

Thor’s $150M loan on 597 Fifth heads to special servicing

Thor’s $150M loan on 597 Fifth heads to special servicing
258 8th Avenue (Google, Target)

Target planning yet another NYC store in Chelsea

Target planning yet another NYC store in Chelsea
Steve Witkoff and 4766 North Bay Road (Getty, Douglas Elliman)

Steve Witkoff buys waterfront Miami Beach lot for $8M

Steve Witkoff buys waterfront Miami Beach lot for $8M
Churchill Real Estate's Justin Ehrlich and 381 Broadway (Google Maps)

Two-year Tribeca foreclosure saga continues with lawsuit over $20M

Two-year Tribeca foreclosure saga continues with lawsuit over $20M
Compass CEO Robert Reffkin (Getty; iStock)

Compass eyes IPO in 2021

Compass eyes IPO in 2021
arrow_forward_ios

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

Loading...