Ziel Feldman, the head of HFZ Capital Group, had the winning bid for the $147 million construction loan for the 34-story Setai condominium project on Broad Street, say people familiar with the matter, according to an article by Craig Karmin in today's edition of The Wall Street Journal.

His bid of about $80 million beat out more than a dozen other investors, the article said, adding that some observers said he will likely reach a deal with the developer, Zamir Equities, to take control of the building.

Mr. Feldman, a Queens-born former real-estate attorney, declined to comment on his plans for the Setai, and Asher Zamir, a principal at Zamir Equities, didn't respond to a request for comment on Wednesday.

The loan, which was in default, was sold by Anglo Irish Bank Corp., the troubled bank that was nationalized last year after suffering losses on property loans abroad when the market collapsed and Holliday Fenoglio Fowler ran the sale, the article said.

In recent months, the article continued, "Mr. Feldman has picked up a number of other projects that had previously gone awry, acquiring them at sharply discounted prices. He gained control of a prime development site near Bryant Park by buying the debt for $41 million and then cutting a deal with the owner, paying him an undisclosed amount.

The owner had been planning to build New York's first "green" luxury hotel there. Mr. Feldman has put the site, currently a 12,000-square-foot parking lot, up for sale, according to a person familiar with the matter."

Before that, the article added, "Mr. Feldman paid about $38 million for the debt on a stalled residential development on East 51st Street that was the site of a crane accident in 2008 that killed seven people.

"Mr. Feldman's HFZ Capital also is teaming with Cevdet Caner, a real-estate developer currently living in Monaco, in vying for control of a long-stalled high-rise project called One Madison Park, according to court documents and a person familiar with the matter. The unfinished 50-story Manhattan condo, which is in Chapter 11 bankruptcy protection, became a potent symbol of how quickly the housing boom turned to bust, leaving once-promising projects in the lurch," the article said.

Ross Moskowitz, a real-estate partner at Stroock & Stroock & Lavan, says HFZ could either look to flip the Setai building, as Mr. Feldman appears to be doing with the Bryant Park site, or invest in the project with a view toward a three- to five-year investment plan.

Given that the Setai already has tenants, including a spa and an Asian fusion restaurant, Mr. Feldman has incentive to run it for the longer-term, Mr. Moskowitz says. He would be able to cut prices to boost sales because his debt load is about half what the developer faced, Mr. Moskowitz says.

The 34-story former office building initially had sales contracts for more than half of its 162 condo units. But the New York attorney general released buyers from those obligations in 2009 after the project ran aground with construction delays and cost overruns, according to condo documents.

Mr. Zamir said in November that buyers have closed on about 40% of the units, and another 10% are in contract.

The New York attorney general's office has halted any additional closings because of questions about the project's financing. The developer also ran into problems with the Setai Group, a hotel and development company that alleged in state court that some of the building's features are below Setai standards.

The Setai, seeking unspecified damages, alleges breach of contract. Mr. Zamir has declined to comment on the suit.

The sale of the Setai loan was part of Anglo Irish's plan to raise cash by dumping real-estate assets. The bank previously sold loans for Manhattan's Alex Hotel and Flatotel, and is trying to find a buyer for a $270 million loan for the Mark, a hotel and co-op conversion project on the Upper East Side.