Buyers of Yorkville buildings are suing to pause the deal

Sale has been twice delayed since June

TRD New York /
Sep.September 11, 2017 04:40 PM

A developer attempting to gather an assemblage in Yorkville has filed suit against the seller of Two Properties Along York Avenue.

The buyer, a group of investors that controls the entity 1567 York LLC, entered into contract with the sellers, George and Goldie Papoutsis, in December for two buildings at 1567 and 1571 York Avenue, for $16.6 million.

The sale of the two walk-ups, between East 83rd and 84th streets, was supposed to close in July, but the buyer filed for bankruptcy in what appeared to be a bid to stall for time. In August, the two parties seemed to have reached an agreement to delay the closing date further, to Oct. 31. In exchange the buyer would pay a $150,000 fee and compensate Papoutsis for rent on vacant apartments.

But at the last minute, the buyer claims, Papoutsis pulled out and would not accept any delay past Sept. 7.

In the interim, thinking he had the York buildings in hand, the buyer moved to close on a deal on 453 East 83rd Street, a building that connects both York Avenue properties.

Now, the buyer is asking the court to enforce the August agreement, which would pause the contract until October.

The two five-story rentals are part of a string of 10-unit buildings with two commercial units each. Papoutsis owns a third property at 1565 York Avenue, at the corner of East 83rd, which is not included in the dispute.

The Papoutsises were not immediately available for comment.

Yorkville is an active area for development, particularly now with the completion of the Second Avenue subway. The city recently tapped Fetner Properties to build a 330-unit mixed-income tower at York Avenue and East 92nd Street, tower in the area, and Extell Development refinanced an assemblage at East 86th and First Avenue in May.


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