Debt On 4 HFZ Condo Buildings Up For Foreclosure Auction
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.
