Fortress buys debt on troubled 125 Greenwich

SoftBank-owned investment firm paid $230M for tower’s defaulted mortgage

TRD NEW YORK /
Mar.March 02, 2020 09:38 AM
125 Greenwich Street (Credit: 125 Greenwich, iStock)

125 Greenwich Street (Credit: 125 Greenwich, iStock)

A SoftBank-owned investment firm has purchased the defaulted mortgage on the troubled luxury condo tower 125 Greenwich Street.

Fortress Investment Group bought the mortgage for about $230 million from the investment firm BH3, according to the Wall Street Journal. BH3 had been moving to foreclose on the 88-story project, which is under construction but nearly complete. Fortress will have the right to continue the foreclosure lawsuit if it chooses.

The developers — Howard Lorber’s New Valley, Davide Bizzi’s Bizzi & Partners, the Carlton Group and China Cindat — defaulted on the loan as the market for high-end apartments in New York began to weaken. A group of lenders including United Overseas Bank filed to foreclose on the project last year, but BH3 ended up buying the loan for about $125 million in July.

Manhattan is dealing with a glut of luxury condos thanks to a surge in new construction, which has given investors an opportunity to bail developers out at high interest rates, purchase defaulted loans or take over projects that are not doing well for low prices.

BH3 co-founder Daniel Lebensohn told the Journal he “would not expect” Fortress to slow down the foreclosure process on the tower. [WSJ] — Eddie Small


Related Articles

arrow_forward_ios
Here are the week’s top luxury sales

Here are the week’s top luxury sales

Clockwise from left: John D. Rockefeller, Izzy Englander, Steven Mnuchin, David Koch, Jacqueline Bouvier, and William Zeckendorf (Credit: Getty Images and StreetEasy)

For 15 years, David Koch lived at the world’s “richest building”

Here are the week’s top luxury sales

Here are the week’s top luxury sales

WeWork CEO Sandeep Mathrani and Softbank CEO Masayoshi Son (Mathrani by Neilson Barnard/Getty Images; Son by Tomohiro Ohsumi/Getty Images)

WeWork sues SoftBank for scrapping $3B bailout

Softbank CEO Masayoshi Son (Photo by Tomohiro Ohsumi/Getty Images)

“Tactically, I’ve made regrets. Strategically, I am unchanged:” The Masa Son interview

Vornado Realty Trust’s Steven Roth and 220 Central Park South (Credit: Roth by Bruce Glikas/FilmMagic; Jim.henderson via Wikipedia Commons)

Vornado inks another $52M closing at 220 Central Park South

WeWork CEO Sandeep Mathrani and Softbank CEO Masayoshi Son (Credit: Mathrani by Neilson Barnard/Getty Images; Son by Alessandro Di Ciommo/NurPhoto via Getty Images)

WeWork asks landlords to cut rent bill as SoftBank abandons bailout

Chrissy Teigen and John Legend with 374 Broome Street (Credit: Karwai Tang/Getty Images; Google Maps)

John Legend, Chrissy Teigen snap up another Nolita penthouse

arrow_forward_ios
Loading...