Futterman loses control of Harlem site

Bankruptcy court confirms RWN’s plan for September auction

TRD New York /
Sep.September 01, 2017 03:39 PM

From left: Bob Knakal, a rendering of 300 West 122nd Street and Ari Shalam

Hans Futterman has lost control of his troubled Harlem development site, after a failed last-ditch attempt to pay back creditors on the 127-unit residential project.

Futterman’s lender, Ari Shalam’s RWN Real Estate Partners, is taking control of the site at 300 West 122nd Street, which will once again hit the auction block. The U.S. Bankruptcy Court for the Southern District of New York confirmed the new plan Thursday, records show.

After assembling the land at Frederick Douglass Boulevard and West 122nd Street in 2015, Futterman secured approvals to build a 12-story property known as the Ladera on the site, which offers 205,000 buildable square feet. In June 2016, Futterman defaulted on a $36 million loan from RWN. Five months later, his development firm RGS Holdings filed for Chapter 11 bankruptcy protection.

The parties agreed to postpone a June bankruptcy auction in favor of Futterman’s voluntary plan to secure funding by an August deadline. He had until Wednesday to lock in the funds to pay his debts and potentially rescue the site.

A source said “funding was available, but not all of the parties were happy with language in the loan documents.”

As a result of the missed deadline, the court moved ahead with RWN’s plan, which is to auction off the site. Futterman may still be able to get the site back through the auction, and sources said he plans to submit a bid.

Futterman declined to comment, and Shalam could not be reached.

Initial bids are due Sept. 7, and the auction is scheduled for Sept. 14. Sources estimated the site could fetch as much as $70 million.

Bidders who submit will have to put a deposit into escrow – either $2.5 million or 5 percent of the bid, whichever is greater, court records show.

“For someone, this site will make for a fantastic building,” said Cushman & Wakefield’s Bob Knakal, who is handling the bankruptcy auction with colleague Adam Spies. “It’s just a question of figuring out who will develop it.”

Futterman developed an 89-unit condominium at 2280 Frederick Douglass Boulevard among other Harlem projects.


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)

Real estate stocks push up this week as U.S.-China trade tensions ease

Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Clockwise from top: Savanna's Christopher Schlank with 1375 Broadway, a rendering of 40 10th Avenue and 109 East 79th Street with Victor Sigoura (Google Maps; Getty; rendering via 40tenthave)

These were the largest Manhattan real estate loans in July

These were the largest Manhattan real estate loans in July
200 Water Street and 31 Prospect Park West (Google Maps)

Brooklyn’s luxury deal totals rise for 3rd straight week

Brooklyn’s luxury deal totals rise for 3rd straight week
Metro areas with less affordable housing drive high-income buyers to eye homes in lower-income neighborhoods at disproportionate rates (iStock)

TRD Insights: Gentrification happening fastest in least affordable cities

TRD Insights: Gentrification happening fastest in least affordable cities
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?
New York’s real estate market is becoming two different stories: Manhattan, where deals are falling — and the suburbs, where demand is spiking. (iStock, Unsplash)

Manhattan is cold, the suburbs and Brooklyn are hot: Here’s what the resi market looked like in July

Manhattan is cold, the suburbs and Brooklyn are hot: Here’s what the resi market looked like in July
Home sale price declines are expected for July, after a recent bump, according to a CoreLogic report. (iStock)

Home sale prices got a bump, but a drop is coming: Report

Home sale prices got a bump, but a drop is coming: Report
arrow_forward_ios

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

Loading...