Hedge funder Philip Falcone may lose UES, Hamptons homes

Melody Capital has scheduled a UCC foreclosure auction

New York /
Feb.February 22, 2021 05:27 PM
Philip Falcone with his wife Lisa Marie Falcone and their Manhattan home. (Getty, Christie's Real Estate)

Philip Falcone with his wife Lisa Marie Falcone and their Manhattan home. (Getty, Christie’s Real Estate)

Embattled hedge funder Philip Falcone is in danger of losing his pricey homes on the Upper East Side and the Hamptons.

The outside of Philip Falcone's Manhattan home. (Christie's Real Estate)

The outside of Philip Falcone’s Manhattan home. (Christie’s Real Estate)

The Harbinger Capital founder, whose assets were frozen last year by a Manhattan judge, owns a five-story townhouse at 22 East 67th Street that had been on the market in 2018 asking $39 million; and a 14,000-square-foot mansion at 142 Crestview Lane in Sagaponack that is on the market asking $27.9 million.

Now the mezzanine lender on those properties, Melody Capital, has scheduled a UCC foreclosure auction for the equity stake in the homes, according to a notice of the sale reviewed by The Real Deal. The loan has a balance of slightly more than $74 million.

Falcone told TRD he believes Melody initiated the foreclosure in order to thwart a motion he filed seeking to void the loans.

A spokesperson for Melody Capital declined to comment.

The auction is scheduled for April 13, according to a notice of the sale that lists Dustin Stolly, Jordan Roeschlaub and Dan Fromm at Newmark as the brokers marketing the sale. The brokers could not be reached for comment.

Falcone had a net worth valued at $1 billion in 2014, according to Forbes. But he’s had his ups and downs. Falcone reportedly settled a case with the Securities and Exchange Commission in 2013 over allegations that he borrowed more than $100 million from his hedge fund to pay his personal taxes.

According to the Financial Times, a New York judge froze Falcone’s assets after he failed to pay millions in legal fees to the law firm that defended him in that case.





    Related Articles

    arrow_forward_ios
    Town & Country's Judi Desiderio (Getty,  Town & Country Hamptons)
    Hamptons, North Fork sales data emerge in wake of computer hack
    Hamptons, North Fork sales data emerge in wake of computer hack
    From left: Jim St. André, Philip Scheinfeld, and Pauline Miller with 1228 Madison Avenue
    Compass bumps Corcoran Sunshine from UES condops
    Compass bumps Corcoran Sunshine from UES condops
    A photo illustration of 100 Deforest Road in Montauk (Corcoran)
    Montauk trailer lists for $1.1M
    Montauk trailer lists for $1.1M
    (Illustration by The Real Deal with Getty)
    Hamptons house hunters: If you can’t buy, build?
    Hamptons house hunters: If you can’t buy, build?
    Alec Baldwin with 335 Town Lane (Getty, Hampton Real Estate)
    Alec Baldwin bailing on Amagansett estate
    Alec Baldwin bailing on Amagansett estate
    The late Howard Solomon with 4 East 66th Street (Getty, Sotheby's International Realty)
    Late pharma exec’s UES co-op listed for $55M
    Late pharma exec’s UES co-op listed for $55M
    221-243 East 94th Street
    Chapman proposes UES rental tower despite likely opposition
    Chapman proposes UES rental tower despite likely opposition
    Somerset Partners’ Keith Rubenstein and 8 East 62nd Street (Getty Images, Somerset Partners, Google Maps)
    Keith Rubenstein finally ditches UES mansion for $50M
    Keith Rubenstein finally ditches UES mansion for $50M
    arrow_forward_ios

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

    Loading...