Bauhouse Group’s Sutton Place supertall faces foreclosure

The developer's $128.8 million in loans expired last month

TRD New York /
Feb.February 10, 2016 01:15 PM

Gamma Real Estate is making moves to foreclose on Bauhouse Group’s troubled supertall planned for Sutton Place.

Bauhouse’s $128.8 million in loans expired last month, spurring the lender, Gamma, to begin the process of seizing 426-432 E. 58th Street, Crain’s reported. The developer argues that foreclosure is premature.

“The lender’s flawed and incomplete legal steps to rush the auction are commercially unreasonable and will not withstand judicial scrutiny,” Bauhouse said in a statement. Joseph Beninati’s company also claimed there are “multiple sources of capital competing for the opportunity to finance the next round of the Sutton Place development and pay off the existing lender’s full principal and interest.”

News of a possible foreclosure comes as Bauhouse is seeking an additional $80 million mezzanine loan to fund the residential project. Last week, The Real Deal reported that the Carlton Group was trying to arrange financing.

The tower — known as 3 Sutton Place — has also drawn fierce community opposition for its height, which is now at 68 stories, down from its initially planned 80 stories. An opposition group, the East River Fifties Alliance, recently filed an application with the Department of City Planning to impose a building height limit in the area to prevent the project. [Crain’s] — Kathryn Brenzel


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
Mall of San Juan (Taubman)

Taubman’s $475M Mall of San Juan gets “knocked out” after reopening

Taubman’s $475M Mall of San Juan gets “knocked out” after reopening
Invitation Homes CEO Dallas Tanner (iStock; Tanner via Invitation Homes)

Invitation Homes may double its single-family portfolio

Invitation Homes may double its single-family portfolio
Richard Branson and Brightline train (Getty, Virgin)

Brightline ends partnership with Virgin Trains in South Florida

Brightline ends partnership with Virgin Trains in South Florida
Gov. Andrew Cuomo has given the go-ahead to reopen schools for in-person learning statewide (Getty; iStock)

School’s back on. Will the NYC resi market follow suit?

School’s back on. Will the NYC resi market follow suit?
(Google Maps)

National retail chains paid 80% of July rent, a Covid high

National retail chains paid 80% of July rent, a Covid high
arrow_forward_ios

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

Loading...