Fortis Property Group’s ambitious plan to redevelop the quiet Cobble Hill site into a three-unit luxury condominium development ran into trouble.
lender Madison Realty Capital Fortis has commenced the sale of UCC’s foreclosure interests in development sites at 350 Hicks Street and 91-95 Pacific Street, which are planned for two condominiums totaling 150 units.
The Hicks Street building, called 1 River Park, is 20 stories high and has 48 apartments above parking garages and community spaces. 2 River Park, on the Pacific Street grounds, has 102 homes.
A third building, the 25-unit 5 River Park at 347 Henry Street, was not subject to the UCC’s foreclosure and was “nearly 75 percent sold.” According to the Fortis website.
According to marketing materials, selling stakes in the two sites would pay off $47.7 million in debt. The sale is set for September 29th. The reason for the default is not clear.
The foreclosure notice comes as Fortis’ other major project, a planned 60-story condominium tower on One Maiden Lane in the financial district, remains unfinished during the financial crisis. increase. Disputes between Fortis and its lenders On cash flow and construction issues.
The company has more success in Brooklyn, where the 76-unit Olympia Dumbo is home to several neighborhoods. most expensive real estate per square foot.
Fortis and Madison Realty can settle the foreclosure before the auction date by restructuring the debt or agreeing to an extension to avoid the sale.
The deal was later scrutinized for Mayor Bill de Blasio’s alleged role in facilitating it.
The former mayor, who was arrested during the 2013 election campaign for protesting the closure of the on-site hospital, helped broker a deal to sell the property after taking office. Multiple news outlets reported at the time that former Manhattan federal prosecutor Prieto Bharara was investigating his involvement in De Blasio’s sale, but no charges were filed.
De Blasio then pushed for the rezoning of the hospital grounds to allow for both higher density and affordable housing, while then-council member Brad Williams, who represented the neighborhood, Lander objected to it. Fortis ultimately decided to use market priced condos that did not require rezoning.
Shortly after the winning bid, Fortis secured a $107 million bridge loan from Madison Realty. Two years later, Madison Realty gave Fortis his $297 million construction loan for his three condos.
Fortis’ Jonathan Landau said: real 2016.
Greg Corbyn, president of bankruptcy and restructuring at Rosewood Realty Group, is pitching the foreclosure sale. Matthew Mannion of Mannion Auctions is the auctioneer.
Fortis did not immediately return a request for comment. Madison Realty declined to comment.