Zeckendorfs buying foreclosed UES condo project for $250M

Children’s Investment Fund took control of Ceruzzi Properties’ Hayworth development

New York /
Feb.February 23, 2022 12:00 PM

From left: William Lie and Arthur Zeckendorf in front of The Hayworth at 1289 Lexington Avenue (Getty Images, Zeckendorf Development, The Corcoran Group/Illustration by Steven Dilakian for The Real Deal)

The Zeckendorfs are back with another big development deal.

Brothers William Lie and Arthur are buying Ceruzzi Development’s foreclosed condo project on the Upper East Side for around $250 million, The Real Deal has learned.

Zeckendorf Development is buying the 61-unit Hayworth condo at 1289 Lexington Avenue from U.K.-based lender Children’s Investment Fund, which took control of the property through a foreclosure auction in January.

It’s the second big acquisition in recent weeks for Zeckendorf Development, which inked a deal to develop a $1 billion in Hudson Square.

Representatives for Zeckendorf and the Children’s fund did not immediately respond to requests for comment.

The sale represents a new chapter for the Hayworth, which had been eyeing a sellout of about $375 million.

Ceruzzi founder Louis Ceruzzi, who died unexpectedly in 2017, began assembling the site about a decade ago. The project moved forward and launched sales in 2019 — during a slowdown in the condo market — and fell behind on its construction loan with Children’s.

Ceruzzi’s president, Arthur Hooper, tried to secure rescue financing for the project and later sought to sell his firm’s equity position. But the price was too high, according to a source familiar with the project, and potential investors balked.

Children’s hired a team at Cushman & Wakefield led by Adam Spies and Adam Doneger to market Ceruzzi’s interest in the project at a UCC foreclosure auction and at the same time market the site to potential buyers. The hedge fund ended up taking over the ownership stake itself and then turned around to sell it to Zeckendorf.

It’s similar to what Children’s did with HFZ Capital Group’s stake at the XI project in West Chelsea, which the lender took over and sold to a partnership of Steve Witkoff and Len Blavatnik’s Access Industries.





    Related Articles

    arrow_forward_ios
    Parkview’s Paul Rahimian and 1800 Avenue at Port Imperial (Parkview Financial, Handel Architects, Illustration by Kevin Cifuentes for The Real Deal)
    Chinese developer Hongkun faces foreclosure on luxury NJ condo
    Chinese developer Hongkun faces foreclosure on luxury NJ condo
    Joseph Chetrit and 98 Montague Street in Downtown Brooklyn (Credit: Getty Images and Google Maps)
    Brooklyn’s iconic Bossert Hotel facing foreclosure
    Brooklyn’s iconic Bossert Hotel facing foreclosure
    Related's Stephen Ross, the Gregory Hotel at 42 West 35th Street and Meadow Partners’ Jeffrey Kaplan (Getty, Google Maps, Meadow Partners)
    Related sues Meadow after foreclosure on Garment District hotel
    Related sues Meadow after foreclosure on Garment District hotel
    Extell Development's Gary Barnett. Bluestone Group's Eli Tabak and 605 West 45th Street (Google Maps. LinkedIn, Extell Development)
    Gary Barnett hunts lucrative Hell’s Kitchen assemblage
    Gary Barnett hunts lucrative Hell’s Kitchen assemblage
    520 Park Avenue (Instagram via Tal Alexander)
    Penthouse at 520 Park Avenue sells for $35M — $8M below ask
    Penthouse at 520 Park Avenue sells for $35M — $8M below ask
    Retail landlord Jack Terzi and 240 East 54th Street (Jack Terzi)
    Terzi owes $58M and counting on Midtown SoulCycle building: suit
    Terzi owes $58M and counting on Midtown SoulCycle building: suit
    Robert Gans, 533 West 27th Street and Eli Tabak (Robert's Steakhouse, Google Maps)
    Strip club owner alleges Tabak family conspiracy in $100M suit
    Strip club owner alleges Tabak family conspiracy in $100M suit
    A photo illustration of "Foreclosure" signs (iStock)
    Foreclosures surge 181% to highest levels since March 2020
    Foreclosures surge 181% to highest levels since March 2020
    arrow_forward_ios

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

    Loading...