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Victor Sigoura Buys Bankrupt West Chelsea Site For $87.4M

540 W. 21st St. in Chelsea, a site once planned for condos worth more than $500M.

Developer Victor Sigoura has acquired an empty lot in Chelsea out of bankruptcy for $87.4M, Bisnow has learned.

Sigoura’s Legion Investment Group bought the site at 540 W. 21st St. from luxury residential developer Casco Development Corp., according to a deed filed Wednesday.

Casco planned to develop a 20-story, 171K SF luxury residential and commercial building on the Chelsea site. But the project stalled, and Casco filed for bankruptcy in August.

At the time, secured and unsecured debt at the property totaled $256.7M, based on an analysis of the bankruptcy filing by Duane Burress, who specializes in land and air rights valuations. Casco's plans included 34 units and an estimated sellout of $539M, The Real Deal reported. 

In a press release sent to Bisnow after the initial publication of this article, Legion said the site has an existing foundation, which will allow it to save on ultimate costs when it moves to develop a project of its own.

"540 West 21st Street represents an exceptional opportunity to create a landmark project on one of the last remaining sites of its kind in New York's most dynamic and trafficked neighborhood," Sigoura said in a statement.

Legion secured a $55.8M acquisition loan for the purchase from Deutsche Bank, financing arranged by Walker & Dunlop's Walker & Dunlop team led by Aaron Appel, Keith Kurland, Jonathan Schwartz, Adam Schwartz and Sean Bastian.

Casco didn't respond to Bisnow’s requests for comment.

Legion has been piecing together assemblages across the city. Earlier this year, it completed a series of parcel acquisitions for an Upper East Side development site with the purchase of 1128 Madison Ave. for $22M. The acquisitions totaled $95M.

In Gramercy Park, Sigoura purchased 252-258 Third Ave., along with air rights from a neighboring co-op, with a price tag of $72M. The assemblage, if he can acquire all the requisite pieces, would give the developer the keys to the private park, allowing him to charge would-be luxury condo buyers top dollar, TRD reported.

Sigoura was an executive for Naftali Group before launching his own development firm, which has completed more than $10B of transactions and developed more than 6M SF of commercial properties, according to Legion's website.

UPDATE, APRIL 18, 10 A.M. ET: This story has been updated to include additional information and a comment from Legion Investment Group.