Harry Jeremias, a developer of the 44-unit, 13-story residential condominium project at 15 Renwick Street in SoHo is facing a foreclosure lawsuit from U.S. Bancorp for allegedly defaulting on a $55.3 million loan, according to an article Friday by David Jones at therealdeal.com.
U.S. Bancorp, in a Sept. 14 lawsuit filed in New York State Supreme Court, claims that it agreed in August 2007 to loan the money to Jeremias and his Harch Group for the building, "which stalled out."
According to the article, "The lender says that after advancing $24.1 million to Harch, the loan fell "out of balance," meaning the outstanding balance of the loan was insufficient to complete the project; therefore, U.S. Bancorp demanded a $1 million to bring the loan back into balance, according to the complaint. The complaint says that Harch continued to operate in a default situation by failing to pay the following: monthly debt service, outstanding mechanics liens, taxes and insurance on the property."
By August 2009, the article continued, "the lender notified Jeremias and the other guarantors, which include Harch partners Henry Orlinsky and Francisco Pujol, that the loan was being accelerated and became fully due. The lender previously filed for a judgment in lieu of complaint against the developers, but that was later rejected by Judge Emily Goodman, so the lender has now filed suit to foreclose on the properties. The lender claims that the developers also defaulted by allowing the project budget to go $6 million out of balance and that the project fell more than 12 months behind schedule after construction was halted. The bank is now demanding the remaining principal balance of $28 million, plus interest, taxes and fees."
Mr. Jeremias was previously sued after defaulting on $83 million in loans for the Jasper, at 114 East 32nd Street and faced similar litigation for allegedly defaulting on $48 million in loans from Bank of America, used to purchase and renovate a 13-story office tower at 216 West 18th Street, the article said.
The site for 15 Renwick Street was on the east side of the street between Canal and Spring Streets and had been previously used as a garage, a stable, a laboratory and an art gallery.
Ismael Leyva was the architect for the project and his website said that the design transforms the residential building "into an 'industrial artifact'" and "pays homage to the manufacturing tradition of an erstwhile industrial neighborhood," adding that "The undulating facade of steel and glass animates the building with its reflective qualities while the stainless steel fins draw the viewer's attention skywards where the building is capped off by a bulkhead caged in perforated metal panels. The bulkhead crown of the building blends it back into a famous New York skyline of 'water tanks on steel dunnage' that are characteristic of this area."
According to the architect's website, the building would have had "a lap pool, gymnasium, spa facilities, tenant storage, party spaces and a serenely Zen courtyard."
U.S. Bancorp, in a Sept. 14 lawsuit filed in New York State Supreme Court, claims that it agreed in August 2007 to loan the money to Jeremias and his Harch Group for the building, "which stalled out."
According to the article, "The lender says that after advancing $24.1 million to Harch, the loan fell "out of balance," meaning the outstanding balance of the loan was insufficient to complete the project; therefore, U.S. Bancorp demanded a $1 million to bring the loan back into balance, according to the complaint. The complaint says that Harch continued to operate in a default situation by failing to pay the following: monthly debt service, outstanding mechanics liens, taxes and insurance on the property."
By August 2009, the article continued, "the lender notified Jeremias and the other guarantors, which include Harch partners Henry Orlinsky and Francisco Pujol, that the loan was being accelerated and became fully due. The lender previously filed for a judgment in lieu of complaint against the developers, but that was later rejected by Judge Emily Goodman, so the lender has now filed suit to foreclose on the properties. The lender claims that the developers also defaulted by allowing the project budget to go $6 million out of balance and that the project fell more than 12 months behind schedule after construction was halted. The bank is now demanding the remaining principal balance of $28 million, plus interest, taxes and fees."
Mr. Jeremias was previously sued after defaulting on $83 million in loans for the Jasper, at 114 East 32nd Street and faced similar litigation for allegedly defaulting on $48 million in loans from Bank of America, used to purchase and renovate a 13-story office tower at 216 West 18th Street, the article said.
The site for 15 Renwick Street was on the east side of the street between Canal and Spring Streets and had been previously used as a garage, a stable, a laboratory and an art gallery.
Ismael Leyva was the architect for the project and his website said that the design transforms the residential building "into an 'industrial artifact'" and "pays homage to the manufacturing tradition of an erstwhile industrial neighborhood," adding that "The undulating facade of steel and glass animates the building with its reflective qualities while the stainless steel fins draw the viewer's attention skywards where the building is capped off by a bulkhead caged in perforated metal panels. The bulkhead crown of the building blends it back into a famous New York skyline of 'water tanks on steel dunnage' that are characteristic of this area."
According to the architect's website, the building would have had "a lap pool, gymnasium, spa facilities, tenant storage, party spaces and a serenely Zen courtyard."
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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