West Chelsea’s Pool House condo project heads to bankruptcy auction

Boutique development, that had been led by Six Sigma, has secured debts of $40M

New York /
Apr.April 01, 2020 10:30 AM
Jason Lee and 435 West 19th Street (Credit: Larry Ford, Google Maps)

Jason Lee and 435 West 19th Street (Credit: Larry Ford, Google Maps)

It’s sink or swim time for the Pool House.

Six Sigma’s West Chelsea condo project that’s been treading water as its partners splashed about is heading for bankruptcy auction.

A federal bankruptcy judge in Manhattan last week gave the green light for the sale of the boutique conversion project — where each unit will include a pool — at 435 West 19th Street, court records show.

Court records show the project has a projected sellout of $55 million. The site’s secured creditors have claims against the property totaling $40 million.

The developer, headed by founder Jason Lee, first filed for bankruptcy in the summer of 2018 after his lenders, Soho-based Churchill Real Estate Holdings, filed to foreclose on the site.

Churchill principal Justin Ehrlich told The Real Deal his goal is to be made whole by the auction.

“We are just the lender. I hope we are paid off in full,” he said.

Lee could not be immediately reached for comment.

Churchill ousted Lee as developer of the project after filing a lawsuit in 2018 accusing him of skimming money off the project. The two sides settled the case in January 2019.

Meridian's David Schechtman

Meridian’s David Schechtman

In a separate case, Lee’s partners filed a lawsuit last summer accusing him of causing them “financially devastating harm.” The case is ongoing, though was put on hold as courts all but shut down amid the Covid pandemic.

David Schechtman of Meridian Investment Sales is conducting the auction.

An offering memorandum for the 19-unit, 35,500-square-foot project says it can expect sales of $2,000 per square foot.

Lee bought the property, a former office building, for $18.25 million in 2014. He hired Pei Partnership Architects, led by the sons of famed architect I. M. Pei, to design the condos.

Contact Rich Bockmann at [email protected] or 908-415-5229


Related Articles

arrow_forward_ios
DW Partners David Warren and 427 Marcy Avenue (Getty, DW Partners, Google Maps)
Bizarre bankruptcy stops Brooklyn condo project foreclosure
Bizarre bankruptcy stops Brooklyn condo project foreclosure
From left: Toby Moskovits and Michael Lichtenstein with the Williamsburg Hotel
Former accountant for troubled Williamsburg Hotel held in contempt
Former accountant for troubled Williamsburg Hotel held in contempt
(Getty Images)
Bed Bath & Beyond weighs bankruptcy
Bed Bath & Beyond weighs bankruptcy
From left: Quadrum Development's Oleg Pavlov, Toby Moskovits, and Heritage Equity Partners' Michael Lichtenstein with the  96 Wythe Ave (Williamsburg Hotel, Getty)
UK firm to buy Moskovits, Lichtenstein’s Williamsburg Hotel for $96M
UK firm to buy Moskovits, Lichtenstein’s Williamsburg Hotel for $96M
Party City prepares to file for bankruptcy
Party City prepares to file for bankruptcy
Party City prepares to file for bankruptcy
Inside Maverick’s bag of tricks
Inside Maverick’s bag of tricks
Inside Maverick’s bag of tricks
From left: Vornado’s Steve Roth and Andrew Penson with 1601 Broadway
Crowne Plaza Times Square Hotel owners file for bankruptcy
Crowne Plaza Times Square Hotel owners file for bankruptcy
Barnet Liberman and 421 Hudson Street (Getty; Apartments)
Creditors want Printing House condos from bankrupt Barnet Liberman
Creditors want Printing House condos from bankrupt Barnet Liberman
arrow_forward_ios

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

Loading...