Debt On 4 HFZ Condo Buildings Up For Foreclosure Auction

Photo credit: 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
Sign up for more articles like this
Subscribe to Bisnow's New York Newsletters
Related Stories

How Long Island Projects Can Cut Through Red Tape And Community Opposition To Cross The Finish Line

Empire State Building Observation Deck Hemorrhaging Visitors, Value

Boca Raton's New Leaders Throwing 'All Kinds Of Curveballs' At Developers

Slate, Hudson Cos. Picked To Develop Massive Queens Housing Project

BXP's 343 Madison Lands $1.2B Loan, Nears Deal With Equity Partner

Mamdani Adds Millions To Program Helping Retailers Negotiate With Landlords

Canadian REIT Buys Brooklyn Medical Office For $90M: The N.Y. Deal Sheet

NYC Stops Construction On Another Office-To-Residential Conversion As Inspectors Descend On Job Sites

SL Green Cashing In On Surging Manhattan Office Market

Developers Build More Bedrooms As 99-Unit Projects Dominate

Mamdani Names Anthony Shorris CEO, Lina Khan Chair Of EDC

Landlords Sue Rental Board, Claiming 'Sham Process' Led To Rent Freeze