The Reuben brothers nabbed another win after an appellate court ruled Thursday it would not reverse a decision made against an EB-5 lender group related to the $2.5 billion Century Plaza project.
This week’s order upholds a New York appellate court order in January dismissing claims made by a group of EB-5 lenders who alleged the Reubens and their Motcomb Estates improperly reworked Century Plaza’s debt stack in their own favor. The group claimed the Reubens’ actions intentionally pushed out junior lenders’ ability to collect loan payments on the Century City property.
Motcomb and the Reubens took control of Century Plaza’s hotel, retail and some of the condominiums after foreclosing on a portion of the project’s senior and mezzanine debt last year, triggering the EB-5 legal dispute. The most recent court order allows for the Reubens’ foreclosure on the remaining debt to continue, according to Rosenberg & Estis attorney Eric Orenstein, who represents the Reubens.
A spokesperson for the Reuben Brothers U.K.-based business and Jonathan Preziosi of Lewis Brisbois, an attorney for the EB-5 group, did not respond to a request for comment Friday.
Separately, it remains unclear what will happen with the nearly 200 condos still owned by Century Plaza developer Michael Rosenfeld.
A forbearance agreement struck between the developer and the Reubens extended the maturity date of those condo loans by 12 months. Orenstein declined to comment on whether there were plans for a second foreclosure.
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