Despite legal troubles, the first units at 111 West 57th Street go into contract
Rendering of 111 West 57th Street via Property Markets Group
Just last week, 6sqft covered the financial and legal woes of Property Markets Group and JDS Development’s super tall and slender tower at 111 West 57th Street. Despite reports that construction had stalled over budget overruns and a potential foreclosure, the first condominiums, at what is lined up to be the world’s future tallest residential skyscraper, just went into contract (h/t The Real Deal). While Apollo Commercial Real Estate Finance, which issued a $325 million mezzanine loan for the project, did not share exactly how many units out of 60 are under contract, CEO Stuart Rothstein told TRD, they sold at “prices well over (Apollo’s) basis.”
SHoP Architects is designing the 1,418-foot-tall tower on Billionaires’ Row, which has a projected sellout of $1.45 billion. The approved offering plan shows that apartment prices will start at $15.5 million, with the most expensive unit on the 74th floor listed for $58 million. The average asking sales price for the tower is $5,740 per square foot, lower than that of Vornado Realty Trust’s 220 Central Park South and Extell Development’s Central Park Tower. Similar to those aforementioned supertalls, the offering plan for 111 West 57th Street shows a few of its largest units without prices.
AmBase, which holds an equity stake in the tower, sued Kevin Maloney of Property Markets Group and Michael Stern of JDS Development, as well as Spruce Capital Partners, claiming they “omitted some very significant items in their budget including cranes, which are very expensive in New York and can run into the millions of dollars,” according to Stephen Meister, the attorney for AmBase. In June, Maloney, Stern and AmBase defaulted on a payment on a $25 million mezzanine loan from Spruce Capital Partners. In response, a judge enforced a strict foreclosure procedure, blocking Spruce from taking ownership of the project until a hearing happening in mid-August.
Despite these legal disputes, construction of the tower will most likely proceed. As Manhattan real estate attorney, Stephen Sladkus, put it: “In all likelihood, this dispute will resolve and the skinniest skyscraper, as contemplated, will eventually rise.” The tower at 111 West 57th Street is scheduled for completion in 2018.
[Via The Real Deal]