Held & Hines Quoted Regarding Purchase of 225 Rector
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The Real Deal: Marc Held, Partner at Held & Hines, LLP, is quoted regarding Related Group’s Purchase of 225 Rector
Related closes on purchase of Rector Square
Real Estate Developers’ Yair Levy and Justin Metz, a managing principal with Related Companies Related Cos. today closed the long-anticipated acquisition of Rector Square, the Battery Park City condominium that was foreclosed on by Anglo Irish Bank, for $82.8 million, The Real Deal has learned. Anglo Irish bought the unsold shares of the condo at a November auction of the 304-unit building at 225 Rector Place for the same amount of money, and sold the property to Related, which had been managing the property for nearly 1.5 years after the lender filed to foreclose on former developer Yair Levy. “Rector Square is an asset that we were very familiar with, having initially developed the property and later served as managing agent for the receiver,” said Justin Metz, managing principal at Related. “We look forward to bringing new resources to the development and maximizing value for both our partners and existing owners.”
Sources familiar with the deal said Related will make upgrades to the existing units, but it has yet to decide whether the building will resume sales immediately or continue to rent out apartments. The sale ends one of the biggest condo foreclosures in the history of New York. Former state Attorney General Andrew Cuomo halted sales at Rector Square in 2009 after construction halted at the 304-unit property and the lender called in a default on the mortgage.
As The Real Deal originally reported, Anglo Irish Bank foreclosed on the building after the conversion project unraveled in late 2008. Anglo Irish sued Levy for defaulting on nearly $200 million in mortgage loans, taxes and pilot payments to Battery Park City authority and allegedly spending millions of dollars from the building’s reserve fund. Unit owners have since filed a $100 million fraud suit against Levy and others involved in the conversion, alleging widespread fraud.
“The unit owners will happily work together with Related to bring the building up to par as a first-class, luxury condo,” said attorney Marc Held, who represented about 46 unit owners in the building. “Related is a fine organization that delivers a first-class product. Unit owners are hopeful this is what they are going to do at 225 Rector within compliance of the offering plan and declaration.” Officials at new AG Eric Schneiderman’s office, lawyers for Anglo Irish and attorneys for Levy were not immediately available for comment.
