Happy Living lands $138M construction loan for once distressed West Harlem site

Previous owner, Hans Futterman, lost the property to lender RWN

Mar.March 26, 2019 06:15 PM

Madison Realty Capital managing principal Josh Zegen and 300 West 122nd Street

UPDATED, 1:00 p.m. April 1: Happy Living Development is ready to move forward with a big project in Harlem, on a site that fell into default in 2017.

The Crown Heights-based company, led by Levi Balkany, landed a $138 million construction loan from Madison Realty Capital for its mixed-used project at 300 West 122nd Street, Commercial Observer reported.

Richard, Ryan and Adam Horowitz of Cooper-Horowitz negotiated the debt.

The site’s previous owner, Hans Futterman, defaulted on a $37 million loan from Ari Shalam’s RWN Real Estate in 2016, and the lender took control of the property a year later. RWN then flipped the property to Happy Living, the only other bidder at the bankruptcy auction, for $68.8 million.

Futterman claims the auction was a sham, and accused RWN of running a “loan-to-own” scheme in bankruptcy filings last year.

RWN has allowed Happy Living to start building on the property before the deal closes. Though a memorandum recorded in city property records last April stated that the deal would close on Dec. 1, no sale has as yet been recorded. Sources told The Real Deal last year that the deal was valued at about $70 million, or $20 million above the auction price.

Happy Living’s plans include 155 condominium units and ground-floor retail for a Fresh Food grocery store. The building will also come with a rooftop lounge, a yoga room, a lap pool and a party room. [CO]Kevin Sun

This story has been updated to include details of the sale that hit property records.

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