Rector Square, a failed Battery Park City condo conversion located at 225 Rector Place and spearheaded by real estate developer Yair Levy, was auctioned off in a bulk sale at a discounted price on Wednesday at the New York Supreme Court.
Anglo Irish, the projectâ€™s largest financial backer, foreclosed on the 304-unit property earlier this year and bought it back for $82.7 million; the bank was owed approximately $135 million. There were no other offers.
The bank may or may not hold onto the property. If a new owner comes in, they can continue to convert it into condos or maintain it as a rental space.
232 of the building’s 304 units were unsold; a 114-space parking garage and commercial office space also occupy the space. 45 of the buildingâ€™s tenants are suing Levy for $100 million.
Do you think this building is better served as a rental space for residents?
The bank which owns nearly 230 apartments at Rector Square has announced that it will be planning a “bulk sale” of the apartments in September according to reports from Independent.ie.
The Anglo Irish Bank has been embroiled in a legal dispute with Rector Square’s developer Yair Levy and won an order of foreclosure on the Rector Square building.
Yair Levy seems to have ground accustomed to legal problems, after Attorney General Andrew Cuomo and unit owners of the building have both filed suits against Levy’s company YL Real Esate, for mishandling the operations of the Rector Square building.Â YL Real Estate has defaulted on $165 million in loans.
According to the same report, Units initial sold for $1000 per square foot Â are now valued at $400 per square foot. It is not clear what the foreclosure rate for the units will be when the parcel of units go up on the block in September.
Andrew M. Cuomo, the New York attorney general, has a beef with real estate developer Yair Levy. The reason for that aforementioned beef: Levy allegedly purloined $7.4 million from the reserve fund of a luxury building he was developing in Battery Park City.
According to The New York Times, Cuomo filed a lawsuit in State Supreme Court on Wednesday, accusing Levy of leaving the 304-unit luxury building at 225 Rector Place, with a measly $70 in its reserve fund, probably not quite enough to cover the “capital repairs, replacements and improvements necessary for the health and safety of the residents” for which the fund was intended.