New York

Bauhouse’s Sutton Place site may head to foreclosure auction

Beninati owes about $147M to Gamma Real Estate

A rendering of <a class="lavamap_link" style="text-decoration: none !important; color: inherit; box-shadow:none !important; pointer-events: none; cursor: default;" href="https://lavamap.com/property/3-Sutton-Place-New-York-NY-10022/1013720027-0" target="_blank" data-address="3%20Sutton%20Place%2C%20New%20York" data-label="3%20Sutton%20Place" data-url="https%3A%2F%2Flavamap.com%2Fproperty%2F3-Sutton-Place-New-York-NY-10022%2F1013720027-0" data-bbl="1013720027" data-blockValue="01372" data-lotValue="0027" data-zipcode="10022" data-bldgArea="11%2C240" data-bldgDepth="70" data-bldgFront="40" data-landUse="Public%20facilities%20%26%20institutions" data-lotArea="2%2C810" data-lotFront="40" data-lotDepth="70.25" data-retailArea="0" data-resArea="0" data-officeArea="11%2C240" data-garageArea="0" data-strgeArea="0" data-factryArea="0" data-otherArea="0" data-bldgClass="Z5" data-primaryZoning="R10" data-commercialOverlay="" data-far="10" data-buildable="28%2C100" data-airRights="16%2C860" data-propertyNeighborhood="Sutton%20Place" data-latitude="40.7574640437791" data-longitude="-73.9602490847876" data-moreList="%5B%7B%22icon%22%3A%22https%3A%5C%2F%5C%2Fcdn.lavamap.com%5C%2Fwp-lavamap-link%5C%2Fpublic%5C%2Fimg%5C%2FviewOnMap.svg%22%2C%22url%22%3A%22https%3A%5C%2F%5C%2Flavamap.com%5C%2Fproperty%5C%2F3-Sutton-Place-New-York-NY-10022%5C%2F1013720027-0%22%2C%22urlLabel%22%3A%22View%20on%20LavaMap%22%7D%2C%7B%22icon%22%3A%22https%3A%5C%2F%5C%2Fcdn.lavamap.com%5C%2Fwp-lavamap-link%5C%2Fpublic%5C%2Fimg%5C%2Fownership.svg%22%2C%22url%22%3A%22https%3A%5C%2F%5C%2Flavamap.com%5C%2Fproperty%5C%2F3-Sutton-Place-New-York-NY-10022%5C%2F1013720027-1%22%2C%22urlLabel%22%3A%22View%20Ownership%20on%20LavaMap%22%7D%2C%7B%22icon%22%3A%22https%3A%5C%2F%5C%2Fcdn.lavamap.com%5C%2Fwp-lavamap-link%5C%2Fpublic%5C%2Fimg%5C%2FleaseComps.svg%22%2C%22url%22%3A%22https%3A%5C%2F%5C%2Ftherealdeal.com%5C%2Fnew-research%22%2C%22urlLabel%22%3A%22TRData%22%7D%5D" data-articleList="%5B%5D" rel="noopener">3 Sutton Place</a> on the Upper East Side (inset from left: N. Richard Kalikow of Gamma, and Joseph Beninati, of Bauhouse)

A rendering of 3 Sutton Place on the Upper East Side (inset from left: N. Richard Kalikow of Gamma, and Joseph Beninati, of Bauhouse)

UPDATED, 5:45 p.m., Feb. 18; correction appended: With $147 million owed to Gamma Real Estate, Bauhouse Group’s site for a planned supertall at Sutton Place may go on the auction block Feb. 29.

N. Richard Kalikow’s Gamma recently began the process of seizing the property after Bauhouse’s $128.8 million in loans expired last month, and moved to seize the property at 428-432 East 58th Street.

Much of the money Joseph Beninati’s firm owes Gamma was used to purchase the site and for costs associated with starting a development project, Stephen Meister, an attorney representing Bauhouse, told Crain’s. Meister said the loan’s terms were onerous, citing Gamma’s $40 million fee on top of the debt due upon the loan’s repayment.

Bauhouse has struggled to secure construction financing, and is seeking an additional $80 million mezzanine loan to fund the residential project, known as 3 Sutton Place. The Real Deal reported the Carlton Group was trying to arrange financing.

Brokerage firm Eastdil Secured will market the site to potential bidders.

The developer initially planned a luxury 80-story tower — now 68 — at the site, which drew heavy opposition from the neighborhood. East River Fifties Alliance, an opposition group, recently filed an application with the Department of City Planning to impose a building height limit in the area to prevent the project. [Crain’s]Dusica Sue Malesevic

Correction: A previous version of this story misidentified the type of auction. It is a foreclosure auction. 

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New York

Bauhouse’s Sutton Place site may head to foreclosure auction

Beninati owes about $147M to Gamma Real Estate

A rendering of <a class="lavamap_link" style="text-decoration: none !important; color: inherit; box-shadow:none !important; pointer-events: none; cursor: default;" href="https://lavamap.com/property/3-Sutton-Place-New-York-NY-10022/1013720027-0" target="_blank" data-address="3%20Sutton%20Place%2C%20New%20York" data-label="3%20Sutton%20Place" data-url="https%3A%2F%2Flavamap.com%2Fproperty%2F3-Sutton-Place-New-York-NY-10022%2F1013720027-0" data-bbl="1013720027" data-blockValue="01372" data-lotValue="0027" data-zipcode="10022" data-bldgArea="11%2C240" data-bldgDepth="70" data-bldgFront="40" data-landUse="Public%20facilities%20%26%20institutions" data-lotArea="2%2C810" data-lotFront="40" data-lotDepth="70.25" data-retailArea="0" data-resArea="0" data-officeArea="11%2C240" data-garageArea="0" data-strgeArea="0" data-factryArea="0" data-otherArea="0" data-bldgClass="Z5" data-primaryZoning="R10" data-commercialOverlay="" data-far="10" data-buildable="28%2C100" data-airRights="16%2C860" data-propertyNeighborhood="Sutton%20Place" data-latitude="40.7574640437791" data-longitude="-73.9602490847876" data-moreList="%5B%7B%22icon%22%3A%22https%3A%5C%2F%5C%2Fcdn.lavamap.com%5C%2Fwp-lavamap-link%5C%2Fpublic%5C%2Fimg%5C%2FviewOnMap.svg%22%2C%22url%22%3A%22https%3A%5C%2F%5C%2Flavamap.com%5C%2Fproperty%5C%2F3-Sutton-Place-New-York-NY-10022%5C%2F1013720027-0%22%2C%22urlLabel%22%3A%22View%20on%20LavaMap%22%7D%2C%7B%22icon%22%3A%22https%3A%5C%2F%5C%2Fcdn.lavamap.com%5C%2Fwp-lavamap-link%5C%2Fpublic%5C%2Fimg%5C%2Fownership.svg%22%2C%22url%22%3A%22https%3A%5C%2F%5C%2Flavamap.com%5C%2Fproperty%5C%2F3-Sutton-Place-New-York-NY-10022%5C%2F1013720027-1%22%2C%22urlLabel%22%3A%22View%20Ownership%20on%20LavaMap%22%7D%2C%7B%22icon%22%3A%22https%3A%5C%2F%5C%2Fcdn.lavamap.com%5C%2Fwp-lavamap-link%5C%2Fpublic%5C%2Fimg%5C%2FleaseComps.svg%22%2C%22url%22%3A%22https%3A%5C%2F%5C%2Ftherealdeal.com%5C%2Fnew-research%22%2C%22urlLabel%22%3A%22TRData%22%7D%5D" data-articleList="%5B%5D" rel="noopener">3 Sutton Place</a> on the Upper East Side (inset from left: N. Richard Kalikow of Gamma, and Joseph Beninati, of Bauhouse)

A rendering of 3 Sutton Place on the Upper East Side (inset from left: N. Richard Kalikow of Gamma, and Joseph Beninati, of Bauhouse)

UPDATED, 5:45 p.m., Feb. 18; correction appended: With $147 million owed to Gamma Real Estate, Bauhouse Group’s site for a planned supertall at Sutton Place may go on the auction block Feb. 29.

N. Richard Kalikow’s Gamma recently began the process of seizing the property after Bauhouse’s $128.8 million in loans expired last month, and moved to seize the property at 428-432 East 58th Street.

Much of the money Joseph Beninati’s firm owes Gamma was used to purchase the site and for costs associated with starting a development project, Stephen Meister, an attorney representing Bauhouse, told Crain’s. Meister said the loan’s terms were onerous, citing Gamma’s $40 million fee on top of the debt due upon the loan’s repayment.

Bauhouse has struggled to secure construction financing, and is seeking an additional $80 million mezzanine loan to fund the residential project, known as 3 Sutton Place. The Real Deal reported the Carlton Group was trying to arrange financing.

Brokerage firm Eastdil Secured will market the site to potential bidders.

The developer initially planned a luxury 80-story tower — now 68 — at the site, which drew heavy opposition from the neighborhood. East River Fifties Alliance, an opposition group, recently filed an application with the Department of City Planning to impose a building height limit in the area to prevent the project. [Crain’s]Dusica Sue Malesevic

Correction: A previous version of this story misidentified the type of auction. It is a foreclosure auction. 

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