An article in Friday's edition of therealdeal.com by David Jones reported that Yair Levy has been sued by Anglo Irish Bank, which wants to foreclose on $165 million in mortgage loans on Rector Square, the building at 225 Rector Place at South End Avenue in Battery Park City that he acquired from the Related Companies in 2005 in a $165 million transaction that also included Columbus Green, a rental building that was converted to a condominium known as Park Columbus at 101 West 87th Street.
The article said that Mr. Levy shut down the sales office and stopped construction at Rector Square several weeks ago and that he stopped construction at Park Columbus earlier this month.
Mr. Levy, the article continued, "originally financed the deal through a $943 million commercial mortgage-backed security led by Lehman Brothers, which included several other high profile condo loans, including a loan for 25 Broad Street."
The article said that Anglo Irish Bank, Fortress Investment Group and Drawbridge Special Opportunities Fund filed a complaint last week in the New York State Supreme Court against Mr. Levy alleging that he failed to pay $631,158 to the Battery Park City Authority and missed all but one monthly payment of $150,000 since last July.
According to the lawsuit,, the article continued, "Levy owes $117.3 million, plus $662,894 in accrued interest," adding that "The lenders are asking that the court appoint a receiver to manage the property."
The Anglo Irish law suit indicated that 72 of the building's 304 units have been sold, but the sales office was shut last month.
The 23-story building was erected in 1986 and designed by Gruzen Sampton Steinglass (now Gruzen Samton LLP) for the Related Companies.
Related had received tax breaks when it erected the building in exchange for making 20 percent of the units available for moderate-income tenants and in 2002 Related extended that protection to the year 2019 as an inducement for people to stay in the building after the terrorist attacks of September 11, 2001 as it was one of the closest in Battery Park City to Ground Zero.
After paying off a mortgage of the Housing Finance Agency, Mr. Levy argued that the provision of rent controls for the moderate-income units no longer applied. While most of the market-rate tenants in the building vacated as their leases expired, the tenants in the moderate-income units remained.
New York State Attorney General Andrew Cuomo and Manhattan Borough President Scott Stringer prevailed on Mr. Levy to continue the affordable rent protects for tenants remaining in the building. The market-rate tenants in the other units have vacated as their leases expired.
An article by Josh Rogers in the April 13-19, 2007 edition of the Downtown Express indicated that about 50 apartments in the building were still occupied and that a few tenants are still paying market rates.
The building has French windows, a doorman, a concierge, a garage, a roof deck, a residents' lounge with a screening room, a gym and a health club with swimming pool.
The building's three lower floors are clad in limestone and the rest of the facades are clad in two-toned brick.
The article said that Mr. Levy shut down the sales office and stopped construction at Rector Square several weeks ago and that he stopped construction at Park Columbus earlier this month.
Mr. Levy, the article continued, "originally financed the deal through a $943 million commercial mortgage-backed security led by Lehman Brothers, which included several other high profile condo loans, including a loan for 25 Broad Street."
The article said that Anglo Irish Bank, Fortress Investment Group and Drawbridge Special Opportunities Fund filed a complaint last week in the New York State Supreme Court against Mr. Levy alleging that he failed to pay $631,158 to the Battery Park City Authority and missed all but one monthly payment of $150,000 since last July.
According to the lawsuit,, the article continued, "Levy owes $117.3 million, plus $662,894 in accrued interest," adding that "The lenders are asking that the court appoint a receiver to manage the property."
The Anglo Irish law suit indicated that 72 of the building's 304 units have been sold, but the sales office was shut last month.
The 23-story building was erected in 1986 and designed by Gruzen Sampton Steinglass (now Gruzen Samton LLP) for the Related Companies.
Related had received tax breaks when it erected the building in exchange for making 20 percent of the units available for moderate-income tenants and in 2002 Related extended that protection to the year 2019 as an inducement for people to stay in the building after the terrorist attacks of September 11, 2001 as it was one of the closest in Battery Park City to Ground Zero.
After paying off a mortgage of the Housing Finance Agency, Mr. Levy argued that the provision of rent controls for the moderate-income units no longer applied. While most of the market-rate tenants in the building vacated as their leases expired, the tenants in the moderate-income units remained.
New York State Attorney General Andrew Cuomo and Manhattan Borough President Scott Stringer prevailed on Mr. Levy to continue the affordable rent protects for tenants remaining in the building. The market-rate tenants in the other units have vacated as their leases expired.
An article by Josh Rogers in the April 13-19, 2007 edition of the Downtown Express indicated that about 50 apartments in the building were still occupied and that a few tenants are still paying market rates.
The building has French windows, a doorman, a concierge, a garage, a roof deck, a residents' lounge with a screening room, a gym and a health club with swimming pool.
The building's three lower floors are clad in limestone and the rest of the facades are clad in two-toned brick.
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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