Letter shows Zeckendorf eyeing takeover of HFZ’s High Line project

Developer is reportedly putting together an analysis on completing the XI

New York /
Jan.January 07, 2021 05:45 PM
William and Arthur Zeckendorf with the XI (Getty)

William and Arthur Zeckendorf with the XI (Getty)

The Zeckendorf brothers are mulling a takeover of HFZ Capital Group’s struggling $2 billion XI development in West Chelsea.

HFZ said in a December letter to subcontractors that it was in the process of working with Zeckendorf Development and Suffolk Construction on a “a detailed analysis of what work is left to finish for this project,” Crain’s reported.

“You are hereby directed by ownership to fully cooperate and provide any documentation and information to Zeckendorf Development and Suffolk Construction and any of their consultants to achieve this goal,” read the letter, “as well as make yourself available for any meetings as may be required.”

A representative for HFZ, however, denied it was in talks with Zeckendorf.

“There are no such ongoing conversations with HFZ,” Interim Chief Operating Officer William Henrich told Crain’s.

The Bjarke Ingels-designed project is the largest for Ziel Feldman’s HFZ, which is struggling to maintain control of its portfolio as lenders move to foreclose on various properties. Its lender on the XI, the Children’s Investment Fund, this week filed a complaint alleging HFZ was behind on $160 million in payments. The hedge fund provided the developer with a $1.25 billion loan for the project — a 236-unit condo and 137-key hotel — in 2017.

The stress has taken its toll on the firm. HFZ last year laid off about 30 employees and managing partner Nir Meir recently abruptly left the company.

Feldman recently sold his Hamptons home for $50 million, and is looking to sell his Upper East Side penthouse.

[Crain’s] — Rich Bockmann





    Related Articles

    arrow_forward_ios
    Nir Meir Asks Court to Stop Eviction (Google Maps)

    Nir Meir seeks to throw out Hamptons ejection suit

    Nir Meir seeks to throw out Hamptons ejection suit
    Michael Rubin, HFZ Capital Group’s Ziel Feldman and 187 Dune Road in Bridgehampton (Photos via Getty; Google Maps)

    Michael Rubin buys Ziel Feldman’s $50M Hamptons mansion

    Michael Rubin buys Ziel Feldman’s $50M Hamptons mansion
    Ziel Feldman and 187 Dune Road (Getty, Google Maps)

    HFZ’s Ziel Feldman sells Hamptons home for $50M

    HFZ’s Ziel Feldman sells Hamptons home for $50M
    Ziel Feldman and renderings of the West Chelsea property. (The Xi)

    HFZ is behind on $160M in payments at the XI: lender

    HFZ is behind on $160M in payments at the XI: lender
    Empty offices, shut down retail stores, closing restaurants and literal fires are among the biggest real estate disasters of 2020. (Getty)

    Worst of the worst: The real estate disasters of 2020

    Worst of the worst: The real estate disasters of 2020
    Nir Meir and 40 Meadow Lane, Southhampton (Google Maps)

    Former HFZ principal Nir Meir faces ejection from Hamptons home

    Former HFZ principal Nir Meir faces ejection from Hamptons home
    Moonbeam Capital Steven Maskin. (iSock, Moonbeam)

    Private equity exec picks up $9M condo at Trump World Tower

    Private equity exec picks up $9M condo at Trump World Tower
    Ziel Feldman and the proposed development (Getty, HFZ)

    Lender schedules foreclosure auction at HFZ’s Nomad site

    Lender schedules foreclosure auction at HFZ’s Nomad site
    arrow_forward_ios

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

    Loading...