The approval of a temporary restraining order has postponed the foreclosure of the Steinway Tower, which is located in Manhattan on “billionaire’s row.” The investment firm that filed for the restraining order is also an owner of the building. The firm, AmBase, filed the restraining order at the end of July.
A lawsuit has been filed by AmBase against the developers in the deal that claims they tried to obtain a foreclosure on the building, which boasts the address of 111 West 57th Street. The lawsuit claims that the foreclosure attempt could destroy the ownership stake of AmBase and the company’s $70 million investment in the property. According to the lawsuit, the developers also allowed the project to run some $50 million over the budget.
It was suggested in the lawsuit filed by AmBase that the developers omitted expensive line items in the budget, such as the use of cranes. Cranes being operated in New York City can run companies in the millions of dollars.
The lawsuit was filed by AmBase in Manhattan Supreme Court. This is not the first time AmBase has filed a lawsuit against the developers of the Steinway Tower, which is known as the world’s skinniest skyscraper. In 2016, AmBase accused development companies it was working with of diluting their shares in the tower.
The tower, which is to stand 82 stories high, is less than one-quarter of the way complete.
Real estate disputes in New York can be very challenging and difficult to understand. Speaking with an experienced real estate attorney can clear up some of the confusion and help you through the process of any dispute over property.
Source: Jewish Voice, “Foreclosure of Troubled Steinway Tower Development Held At Bay,” Aug. 02, 2017