JDS, PMG countersue AmBase over 111 West 57th

Stern, Maloney's firms say their partner withheld funding for the tower

TRD New York /
Jan.January 18, 2017 01:20 PM

From left: Kevin Maloney, a rendering of 111 West 57th Street and Michael Stern

Nine months after AmBase Corp. sued JDS Development and Property Markets Group for allegedly trying to dilute its stake in the supertall condo project 111 West 57th Street, JDS and PMG have returned the favor.

In a lawsuit filed in New York Supreme Court on Tuesday, the two firms accuse AmBase of withholding “consent to necessary project refinancing” unless JDS TRData LogoTINY and PMG “agreed to pay defendants a sum of money to which defendants were not contractually entitled.”

JDS and PMG seek unspecified damages. Both firms declined to comment. An attorney representing AmBase did not respond to a request for comment.

The Real Deal first reported in May 2015 that AmBase, a small real estate investment trust that joined 111 West 57th Street as an equity partner, did not meet several capital calls for the project. In response, JDS and PMG moved to dilute AmBase’s stake.

In April 2016, AmBase sued JDS and PMG for $105 million, alleging that the capital calls were unnecessary and part of a “scheme to increase their ownership interest in the joint venture at the expense of AmBase.” That case is still ongoing.

The partners landed a $400 million senior loan from AIG and $325 million in mezzanine financing from Apollo Global Management to fund the 1,418-foot-tall tower, which has a projected sellout of $1.45 billion.

In March 2016, PMG’s Kevin Maloney told Bloomberg that the partners were delaying the launch of sales amid broader weakness in the luxury condo market. “If the market were red-hot, people would be buying off plans, throwing checks down, and it’d be great,” he said. “But if you have a market where you think marketing would be ineffective for now, why would you launch and spend the money? Wait.”


Related Articles

arrow_forward_ios
111 West 57th Street (Credit: iStock)

Another legal door closes for jilted investor at 111 West 57th Street

Supreme Court Judge rules against LES development

Two Bridges developers plan to contest judge’s ruling against plans for LES mega development

JDS Development's Michael Stern and a rendering of Two Bridges (Credit: Rendering by Handel Architects via Curbed NY)

Court decision throws JDS’ controversial Two Bridges development into jeopardy

Property Markets Group's Kevin Maloney (left) and JDS Development's Michael Stern with an interior rendering of 111 West 57th Street (Credit: Getty Images)

$58M penthouse at 111 West 57th goes into contract

From left: JDS Development Michael Stern, 111 West 57th Street, and Property Markets Group founder Kevin Maloney (Credit: Getty Images)

Sour grapes at 111 West 57th: AmBase tries again to reclaim the Manhattan supertall

Renderings of 9 DeKalb Avenue in Brooklyn, 333 Schermerhorn Street in Brooklyn, and 11-35 49th Avenue in Long Island City (Credit: JDS Development and Elegran)

These were the top 10 outer borough loans in April

JDS secures $664M construction loan for Brooklyn’s future tallest tower

JDS sells Far Rockaway beachfront complex for $33M

arrow_forward_ios