A troubled Midtown condominium challenge is sliding deeper into disarray as its developer faces one other aggressive transfer from a lender.
Waterfall Asset Administration is in search of to grab Rudy Gabsi’s stake in 611 West 56th Road after the developer allegedly ignored an eight-figure courtroom judgment tied to the luxurious tower, Crain’s reported. The agency filed swimsuit in Manhattan Supreme Court docket to take management of Gabsi’s 90 p.c curiosity within the 35-story, 80-unit constructing, in accordance with the courtroom submitting.
In Might, a choose ordered Gabsi to pay $92.1 million for defaulting on a 2016 mortgage backing the challenge. He by no means paid, the swimsuit says, nor did he present as much as defend himself. With curiosity and charges, the tab has climbed to $93.4 million.
Waterfall needs the courtroom to authorize the sheriff to grab any paperwork wanted to switch Gabsi’s possession stake. The lender needs a choose to reroute future condo-sale proceeds from the constructing straight into its arms.
Gabsi personally assured the debt on the challenge, developed with Sumaida + Khurana.
Reaching him has confirmed troublesome. His Leny Group lists no contact data and courtroom data place him in Tel Aviv. Waterfall and its legal professional, in the meantime, didn’t return calls from the publication.
The tower opened in 2022 on a gritty fringe of Hell’s Kitchen recognized traditionally as Car Row, sporting an providing plan projecting a $232 million sellout. However items have been gradual to maneuver: 9 sponsor residences have been nonetheless in the marketplace Friday, priced from $1.1 million to $6.7 million.
The battle provides to a rising pile of setbacks for Gabsi, whose New York portfolio has been unraveling for the reason that pandemic. His boutique condominium at 534 West twenty ninth Road was headed for public sale this fall over a defaulted mortgage till he signed over the keys in a deed-in-lieu settlement.
Earlier this yr, he additionally misplaced six mixed-use websites in Williamsburg by way of a chapter course of after defaulting on a $92 million be aware; CIM Group picked up the properties for $56 million.
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