2017-07-11 — therealdeal.com
An equity investor in the supertall condo development at 111 West 57th Street claims the developers are facing a cash shortfall of up to $100 million and may need to borrow more money, according to a filing with the Securities and Exchange Commission.
The investor, Ambase Corporation, has a contentious relationship with the developers, Michael Stern's JDS Development Group and Kevin Maloney's Property Markets Group, and acknowledged it has no access to communications between the developers and its lenders.
... In addition, Apollo (the mezzanine lender) has indicated that due to projected budget increases, it believes the current loan has been "out of balance"; and thus 111 West 57th Partners or its subsidiaries would need additional funding in order to complete the project."
Ambase sued the developers last year, alleging that they tried to dilute its stake in project through unnecessary capital calls. The suit provided a rare glimpse into the ownership structure of a luxury residential project. In January JDS and PMG countersued, alleging that Ambase is withholding "consent to necessary project refinancing" unless they "agreed to pay defendants a sum of money to which defendants were not contractually entitled."
In early 2016 Maloney said the developers will delay sales, citing a weak market.
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