Jeffrey Levine’s Douglaston Development appears has come to a settlement agreement with its lender U.S. Bank National over a troubled loan at the Cameo, its luxury rental building at 311 West 50th Street, according to records filed in New York State Supreme Court on Monday.
Douglaston refinanced its mortgage on the property with funds from the Union Labor Life Insurance Company, a spokesperson for the developer told The Real Deal, and has finally exited receivership. The court appointed receiver also successfully recouped more than $5 million towards the unpaid balance of the loan secured by the property in the last 12 months, during which time New York City Management was appointed the property’s manager, according to court filings.
Special servicer CW Capital filed a foreclosure suit against Douglaston last February, The Real Deal previously reported, after the developer failed to make its monthly installments on $47 million in loans starting in August 2011. The total balance of the loans was reportedly $62 million, including interest and other accrued charges. The loan was originally granted to Douglaston by Eurohypo in 2007 but was later assigned to LaSalle National Bank and then U.S. Bank, the current holder of the loan.
Following an agreement between the lender and the developer to end the litigation, the temporary receivership officially ended Tuesday, records show. Control of the building was turned back over to Douglaston as that time, according to the legal stipulation. An attorney for Douglaston did not return requests for comment.
Levine Builders, a unit of Douglaston, originally announced plans for the 102-unit rental property in 2000, The Real Deal previously reported. The building opened in 2001.
“Douglaston’s affiliate, Clinton Management, looks forward to continuing to provide the luxury services that the residents of the Cameo have come to expect,” the spokesperson for Douglaston said.