The developer of a planned Upper Manhattan condominium project has filed for Chapter 11 bankruptcy to keep a foreclosure auction at bay.
Rutherford Thompson took the holding company that owns 33-35 Overlook Terrace into bankruptcy to allow him time to try to find a buyer for the property, Crain’s New York Business reports.
"For the last several months, I have worked diligently to sell the property," Thompson wrote in the filing, according to Crain's. "The goal of the Chapter 11 filing is to preserve the status quo while the debtor takes one final opportunity to procure a buyer for the property so as not to forfeit a project that still retains a potentially bright future after 10 years of turmoil."
The foreclosure auction had been set for last week. Amalgamated Bank has in excess of $30M in debt on the asset. Thompson bought the site in 2006 with the view of developing a 114-unit building known as One Bennett Park there. However, the progress has been stalled.
Developers are pushing deeper into parts of upper Manhattan to build residential buildings. In Harlem, more development is happening north of 125th Street, which was previously considered the major corridor in the neighborhood.
Earlier this month, Inwood became the latest New York City neighborhood to be rezoned, which many expect will pave the way for more ground-up development.
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