Debt On 4 HFZ Condo Buildings Up For Foreclosure Auction

Google Maps
The Astor

Loans on multiple HFZ Capital condominium projects are being shopped for foreclosure sale, according to marketing materials posted to social media and press reports.

Four junior mezzanine loans are on offer through a UCC foreclosure sale, per a flyer posted to Twitter Monday. The loans come to a total of $89.5M and are tied to HFZ’s 88 and 90 Lexington Ave., The Astor at 235 West 75th St., and Fifty Third and Eighth at 301 West 53rd St. The marketing material lists Newmark Knight Frank as the broker.

Representatives for NKF declined to comment, as did a spokesperson for HFZ. The Real Deal reports the auction is going ahead, citing unnamed sources, and Commercial Observer reports that lender CIM Group triggered the sale.

HFZ, led by Ziel Feldman, bought the four sites seven years ago from Westbrook Partners and refinanced them with $500M from JPMorgan Chase and Oaktree Capital loan three years later, per TRD.

The company's largest development is under construction in Chelsea: The XI, a 236-unit, two-tower project set to also feature the first Six Senses Hotel in the U.S.

Omnibuild Construction filed a $102M lien against the company in July, per Crain’s New York Business. Late last month, HFZ settled a lawsuit with the owner of the site where its sales gallery for the XI is located, after it was sued for unpaid rent and failing to vacate the property. The New York Times had also sued the firm in regards to an unpaid advertising bill, which has also been resolved, TRD reported.

Continue reading this story with a free account

Log in or register
Related Topics: HFZ Capital , Ziel Feldman
Sign up for more articles like this
Subscribe to Bisnow's New York Newsletters
Related Stories

KDC Pursues $3.5B In Financing For AT&T's Huge HQ Campus In Plano

Bouwinvest, Tishman Speyer Launch U.S. Office Venture With Chrysler Building As Debut Deal

NYC's All-Electric Building Push Created A Heat-Billing Puzzle. The LFG Split Utility Panel Could Solve It

COPA Passes City Council, Heads To Mamdani's Desk

SL Green's $2.5B Sell-Off Hits Interest Rate Snag

Towers On The Edge: How Austin Is Redefining Vertical Density At The Waterfront

Why A 'Not My Job' Mentality Can Derail A Construction Project

Making Data Center Construction Supply Chains Smarter

Related Lands $750M Loan To Keep 'Broadway's Bedroom' Affordable: The N.Y. Deal Sheet

Elecor, Formerly Paramount Group, Gains New Muscle With Rithm In Its Corner

Despite Foreclosure Litigation, Kaufman Astoria Studios Is Bouncing Back

Copper Mill Sues Partners Over Collapsed Deal For 750-Unit Dorchester Project