225 Rector Place’s common fund depleted

Yair Levy, developer of 225 Rector Place, has allegedly defaulted on debt payments for the property, sending it into foreclosure. Heat and electricity to the building may be shut off. Levy purchased the building, financed by a commercial mortgage-backed security from Lehman Brothers, for $165 million in 2006, as previously reported in The Real Deal. The building’s common fund, which pays for doormen, heat and electricity, is nearly empty, said Maria Rapetskaya, who owns a studio apartment in the building. All construction work on the building stopped in December, and the sales office is now closed. Anglo Irish Bank has sued the developer, as first reported in The Real Deal, claiming that Levy failed to cure loan defaults and defaulted on taxes for a ground lease.