Developers Of Financial District Condo Skyscraper Facing Foreclosure
The companies behind a luxury condominium in the Financial District missed loan repayments and are now facing foreclosure from their senior lender, according to a new lawsuit.
Davide Bizzi’s Bizzi & Partners, Howard Lorber’s New Valley, investment firm Carlton Group and equity partner China Cindat own the project at 125 Greenwich, an 88-story skyscraper designed by Rafael Viñoly.
Senior lender Singapore-based United Overseas Bank filed a notice to foreclose on the sponsors earlier this week, claiming it is owed $195M that it provided, plus unpaid interest, The Real Deal reports. The project topped out earlier this year, and a three-bedroom unit is asking just shy of $7M, per StreetEasy.
The complaint was filed in New York State Supreme Court, and if the foreclosure goes ahead it will wipe out $130M in equity and preferred equity, as well as $200M in junior debt from various lenders, according to TRD.
Earlier this year, the EB-5 lender on the project, Nick Mastroianni's U.S. Immigration Fund, issued a notice of intent to foreclose, though Mastroianni told TRD foreclosure would only be used as a “last resort."
The developers are said to be now trying to lock down a new loan from Silverstein Properties. Silverstein, which established a lending arm last year, provided financing earlier this year to a planned 1,066-foot-tall apartment tower known as 9 DeKalb Ave. in Brooklyn, which would be Brooklyn’s tallest tower.
Lower Manhattan has seen significant growth in residential development in recent years. Harry Macklowe is developing One Wall Street, thanks to a $750M loan from Deutsche Bank, for example. Fortis Property Group is building 161 Maiden Lane — and was sued earlier this year by the contractor on the project, which claimed the tower is already leaning 3 inches north.