Things have been shaky for 111 West 57th Street since it came to light last month that construction on the world’s will-be skinniest skyscraper was stalled at just 20 stories after Property Markets Group‘s Kevin Maloney and JDS Development’s Michael Stern were sued by real estate investment corporation and owner AmBase. Trying to salvage their $66 million investment, Ambase filed an injunction to stop lender Spruce Capital from seizing the $1 billion project, but yesterday a Supreme Court judge ruled that a strict foreclosure could move forward, meaning AmBase will likely lose its majority ownership, according to Crain’s. On the flip side, the developers will now be able to proceed with construction on the 1,421-foot Billionaires’ Row tower, whose units started going into contract earlier this month.
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.”
The construction of Property Markets Group and JDS Development’s 1,421-foot-tall tower at 111 West 57th Street has been the subject of much anticipation and excitement, as it’s slated to be among the tallest residential skyscrapers anywhere and the world’s most slender with a height-to-width ratio of 24:1. But after rising only 20 stories, the SHoP Architects-designed Billionaires’ Row addition has stalled, plagued with budget overruns and headed for foreclosure, the New York Post reports.
Considering GFI Capital Resources‘ recent acquisition of several Bond Street parcels at the corner of Schermerhorn Street, downtown Brooklyn continues to be ripe for development in the vicinity of the Barclays Center.
According to sources close to the deal, hotel developer Allen Gross, president and CEO of GFI, may be looking to bring Ace Hotel’s unique brand of lodging to the location, joining a growing list of hotels already planned for the area.