Related brings 225 Rector Place back to the market

TRD New York /
May.May 04, 2012 08:30 AM

Swamped in controversy from lawsuits, fraud and foreclosure in recent years, the condominium at 225 Rector Place will re-enter the market later this month, the New York Times reported. Related Companies, which bought the building out of foreclosure for $82.8 million last summer, hired Irish designer Clodagh to refurbish the building interiors and common spaces. The 181 units it is bringing to the market range from a 576-square-foot studio asking $495,000 to a 1,963-square-foot three-bedroom listed for $2 million. About one-quarter of the units are already accounted for and 12 more penthouses are being held back from the market until the fall.

The building was constructed as a rental in 1985 by Related, and was sold in 2005 to developer Yair Levy who commissioned a condo conversion. Sales started in 2007, but by 2009 the sales office was closed and construction on building amenities had ceased. Levy defaulted on the loan he took out from Anglo Irish Bank for the conversion, the lender took control and sold it to Related. In between those financial difficulties, the initial wave of buyers sued Levy over the incomplete construction and, in a separate incident, the state Supreme Court ruled the developer committed fraud buy using the building’s reserve fund for personal gain.

Now, Related expects the building to put its tumultuous past behind it and thrive because “there’s a real shortage of brand-new luxury housing down in Battery Park,” according to Sherry Tobak, a senior vice president of Related and the building’s director of sales. [NYT]


Related Articles

arrow_forward_ios
Related's Jamar Adams and Steve Ross with 14-06 Gateway Boulevard (Credit: Getty Images and Google Maps)

Related is the latest developer to target the Rockaways

Related is the latest developer to target the Rockaways
Stephen Ross and Time Warner Center (Getty)

Stephen Ross slashes price of Time Warner Center penthouse

Stephen Ross slashes price of Time Warner Center penthouse
Wesley Edens and 520 West 28th Street, Unit PH37 (Getty, Compass)

Fortress Investment chairman buys steeply discounted Zaha Hadid penthouse

Fortress Investment chairman buys steeply discounted Zaha Hadid penthouse
Neiman Marcus at Hudson Yards and Geoffroy van Raemdonck (Getty)

Neiman Marcus exits bankruptcy $4B lighter

Neiman Marcus exits bankruptcy $4B lighter
President Donald Trump and Joseph Biden (Getty, iStock)

Real estate donors backing Biden over Trump

Real estate donors backing Biden over Trump
Tel Aviv Stock Exchange bull (Wikimedia Commons)

NYC developers face downgrades on Israeli bond market

NYC developers face downgrades on Israeli bond market
Related chairman Stephen Ross with President Donald Trump and Hudson Yards (Photos via Getty Images)

Stephen Ross dishes on Trump, NYC mayoral race

Stephen Ross dishes on Trump, NYC mayoral race
Related chairman Steve Ross and 35 Hudson Yards (Photos via Getty, SOM, MTA)

Hudson Yards pad sells for $7M; cash-strapped MTA gets a cut

Hudson Yards pad sells for $7M; cash-strapped MTA gets a cut
arrow_forward_ios

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

Loading...