1055 Park Avenue is toast

so much for prime manhattan wont feel the pain

87th and Park Avenue Ouch!!!
Couldn't have happened to a nicer developer, too

I beg you're pardon, streetview -- when it happens in prime Manhattan, it's champagne toast!

do we have a toast thread?

I can't believe I typed "you're".

samadams, I'm pretty sure if there's a toast thread it's just for the over-river markets.

what about the artisinal bakers?

and them.

and the gummi bedbugs, of course.

Do you even know how much the alleged claim is for on this lien? A contractor can file a lien for a $100 screw that the owner refused to pay for.

I am not a RE lawyer but this filing appears to be more than a lien. The developer is notorious (and has a reputation) when dealing with the trade. The lawsuit is indicative of the slow and unusual work being performed at the development. Very strange...

A lis pendens is a lien -- not a lawsuit. They are filed all the time by contractors and are generally indicative of nothing other than the lienor believes he is owed money for work/services performed or materials provided. Something strange could be happening but I don't think the lis pendens in and of itself demonstrates that.

Good quote from wiki, streetview!

joepa is wrong - it's not a lien. It's a notice of action.

Just looked at the Plantiff's web site: www.vanguardcon.com Doesn't appear they do small jobs for $100.

Anyone find the lien amount? My guess $650,000. Any other guesses?

Steve - now you are using wiki as your preeminent source of legal advice? It's notice of a pending lien. The purpose is to put any potential purchasers on notice of a claim on the property. Stop trying to be a lawyer.

Regardless of the semantics - The bottom line is - in and of itself it doesn't mean anything. The lis pendens could be for a $100 claim.

joepa - you now say it's a notice of a pending lien, not a lien. Thus the lis pendens is identifying not a lien but a lawsuit. Would they bring a lawsuit for $100? You can tell from the activity at the construction site there is something fishy going on. i.e. the consruction elevator disappeared well before the top interior floors were done.

The developer may try to wrap a bow around it and try to sell it to a foreigner. Hey, one's buying the Nets!

a little butter and a sprinkle of sugar.... mmmmmmmmm .... tasty!

$500psf..... trust me..... I'm an anonymous poster.....

I didn't use wiki, joepa - just searched on the string b/c it sounded odd and found it there.

I'm not trying to be a lawyer. "Lis" is Latin for "Litigation"; "pendens" is Latin for "pending." "Lien" if from the Latin "Ligamen," meaning "Connection" (as in "ligature"). "Litigation" is from the Latin "litigare."

Just that simple.

And since you're such a showoff, joepa - to show how ignorant you truly are:

LIEN: A claim, encumbrance, or charge on property for payment of some debt obligation or duty.

LIS PENDENS: A pending suit. Jurisdiction, power or control which courts acquire over property in suit pending action and until final judgment. A notice of lis pendens is filed on public records for the purpose of warning all persons that title to certain property is in litigation, and that they may be bound by an adverse judgment.

http://www.courts.state.ny.us/courthelp/TermsGlossary.html#l

As published by the NY State Courts.

Your apology is accepted.

It is correct that a Lis Pendens is not a lien, but the first step in the process of FORECLOSING on a lien (or other action such as a Sheriff's sale, etc.). However, this doesn't come anywhere close to "being toast" in and of itself. probably over 97% of properties which have has Lis Pendens filed never make it to foreclosure.

And if this is a contractor's (Mechanic's) lien, it may actually be worth NOTHING if all the debt which it is subordinate to is greater than the value of the building currently. In other words, if the building is worth $40 million and there's $43 million in financing already in place on it, all the creditor gets when they take the property is the Real Estate encumbered by $43 million in debt.

Odds are there's a complicated walytz going on here between several players all hoping that someone else blinks first.

Maybe I'll go look up the building on ACRIS later if i have time.

I believe the "toast" analogy is fair.

Back in March of '09, Real Deal wrote "In fact, said Davis, "We just got a financing commitment from two banks [in mid-March]. Even in a lousy market, you can still get financing if you have the right site in the right location and the right track record."

Well since he has neither and the financing may never have gotten to the funding stage as you can imagine in this difficult market, the Plaintiff may look for hard assets. It's worth a shot.

A few months ago, a former property owner hereabouts asked the court to put a lis pendens on his former home and the motion was granted. The lis pendens serves as a notice to potential buyers that the property may be subject to a judgment. The lis pendens was necessary in this case because the former owner is asking for the property back if he wins. The new owner, a sleazeball developer, tried to sell the property quickly and stealthily without disclosing the lis pendens to brokers and prospective buyers. One of the neighbors got wind of the sale, the plaintiff went to court and the judge hit the roof. He told the developer: sell it if you like but if you do, you will have to deposit $1MM in cash in an escrow account until the matter is adjudicated. That's my understanding of how a lis pendens is usually used.

joepa - where's that apology?

hey joepa...seems stevie succeeded at being a better lawyer than you..you are a lawyer right?

Where is their latest logic... 2bdrm, 2bth duplex w/ $5,500 in common charges. No mention of Square FT or Real Estate Taxes on the condo unit. At $9.3mm, only an unindicted hedge fund manager would be this crazy. Say 2,000 square feet. That's $ 4,600 a square foot in this market for glove (tight) like interiors.

Go Figure...

agreed that this is as harebrained a scheme as they get, but there are workers in hardhats on the premises--work is going on--god knows who's money is currently on the line

So hubby and I were having dinner a couple of weeks ago and doorman calls up to say there is a man with legal papers. Since we are the least litigious people on the planet (well except for the one or two lawsuits you need under your belt to earn a little street cred), we invited him up to serve us his papers out of curiosity. Turns out the builder and developer of our very tony miami property have been swinging some big sized, testosterone-filled hackysacks. The compelling 1200 pages made for some beautiful reading over my organic salad. Turns out the builder was asking the court to have every apt owner sell their apts in order to pay outstanding bills to builder. Our lawyer had never seen anything like it in 25 yrs. of law. Basically the builder wanted to piss off the A types in the building (not us) so they would scream down the throats of the developers. And it worked. Developer is now very attentive. But it is all BS. The developer has an action against the builder for some shoddy work. As if that filing could trump the title insurance of 450 different buyers. You can file any kind of lien you want. Much of it is just posturing by people with way too much money -- as in this case.

But it is a sign of stress in markets. The building may not be toast but it is a definite sign of fissures in the market. Though-- again I know the markets are very different-- the signs of what happened in Miami are starting to creep into the NY market. It will start in Brooklyn and wend it's way right up to w67th's door. As these big gun developers get stressed out, the court actions will fly like sand in the sahara.

Why is just one of the five units for sale? Why not all five?
Is there an offering plan available? Is there a CO? If not, when will it be issued?
What shape are the other units in (interiors)? The high floor units barely appear to be finished.
If I buy now, do I share my elevator with workers? How long? Is there a service elevator?
Five units are offered, are there other units not offered beside the Super's? Developer will live there?
What has become of the lawsuit from the contractor noted above?

Attention BOTTOM FISHERS!! Dramatic price drop (-18%). Was 9.3mm, now 7.5mm. Now a bargain?

This unreal....

this one will ultimately melt

completely ill conceived--illness will be nausea

well said:

It will start in Brooklyn and wend it's way right up to w67th's door.

you forgot the part where LIC will rally

and i crave to attend the welcome party at 67's place

Add another creditor to file a Lis Pendens. This time it's the guy who does the lights. So you have two guys who want to be be paid, the general contractor and the lighting guy. My guess is the building will be "dark".

Per Property Shark:
Lis Pendens filed: 10/23/2009
Judgement Expires: 10/23/2012
Lis Pendens
Document Type: Lis Pendens
Index number: 603245-09
Debtor: Igoc I Park LLC
1055 Park Avenue
New York NY
Creditor: Gotham Lightingsupply Corp

FYI. The failure to pay off liens would be a default under the borrower's construction loan agreement. This developer has biggers problems at this point then just a few mechanics' liens. Oh well, another one bites the dust. We are sure to see rentals soon which will be nice since now the Lucida will not be the only new rental in the neighborhood. In case anyone missed the big sign stating that 28 apartments are available for rent.

Happy hunting!

Hey if anyone goes to the open house today on 11/03, Tues, (1 to 3pm) on 87th and Park Avenue, please ask about these Lis Pendens and report back. Can't imagine how a broker would spin this...

The fat lady is whistling. More bad press. Cash flow must be tight. See another project below from "The Real Deal" of 11/18/09:

Davis Development Holdings, led by investor Trevor Davis, is facing a $17 million foreclosure lawsuit from Manhattan-based Ark Real Estate Partners after defaulting on his Upper East Side condominium site at Lexington and 65th Street. Davis, the former development partner of RFR Holding's Aby Rosen and Michael Fuchs, missed a $94,800 mortgage payment in October and fell behind on payments to MRC Contracting, according to the suit. The lender is now demanding a total of $19.5 million, which includes outstanding interest, principal and late charges. The lender said it reserved the right to appoint a receiver to take over the project, according to the suit, filed Oct. 26, in New York State Supreme Court.

SE is pretty weak if "bloggers" have gone limp since Tiger has been outed. No investigative reporting here?

Saw the site again this week (87th and Park Avenue). Very little going on. What is up???

There is some activity being done on site. From Property Shark it appears that the developer obtained 6mm of new financing in March 2010 from "Zimco Holdings LLC. Anyone know Zimco? Are they bottom fishers? Wrightwood Capital Lender LLC were the first lenders in 2007/08/09.

The horse sculpture left the lobby this morning. Wasn't clear if the reason was practical (the lobby ain't that big to fit an iron horse and a doorman) or was it being repossessed?

Lenders in NY are increasing doing non-judicial foreclosures because they can be completed
in 3-6 weeks, as opposed to spending 1-3 years in state court. A lis pendens is a notice of
intent to foreclose and is filed by entities with a right to title, such as lenders and co-
owners, not materialman, who file mechanics liens which can result only in a money judgment
and not ownership of property.

Streetview- can you please disclose your interest in this property? it seems like most of the postings are by you. As far as the horse. Mr Davis has many sculptures in his country house and I will speculate that he just took it back upstate. i understand that he is also in negotiations for financing his 65th and lex building and it seems like he is turning the corner. So what is your interest in the project?

hey 007 -- what's YOUR interest in the property?

Why don't you identify yourself and your relationship to the deal, while you're calling out someone else to do so.

Just a concerned neighbor who feels that local residents should not be held hostage to the whims (and the promiscuous financial dealings) of this developer. How long will 87th and Park be held under siege?

should it matter why streetview is providing information about a property? unless the information is incorrect. streetview has repeatedly asked for input. and there hasn't been a groundswell of indignant counters to his comments. isn't this a site where we can gather information?

007, why do you care?

007, when you mention "Mr. Davis has many sculptures in his country house", is this the same country house that mysteriously had a fire that gutted the well insured house? So much for Thatched Roofs.
See Mar '09 article http://www.midhudsonnews.com/News/2009/March09/09/Pawl_fire-09Mar09.html

Was he able to rebuild...

Is 1055 Park Avenue going rental? It appears as though the Library, Sauna and Bar are no longer the amenities listed on their web site. So much for extreme living (5 units over 12 floors). Per Property Shark the leases and rents have been assigned and recorded. So much condo ownership on Park Avenue....

@ streetview- The assignment of leases and rents has nothing to do with a building going rental. The Brompton at 85th street also has that document, and Brompton is clearly not rental. Almost all, if not all condo buildings in the city have that in property shark.

Interesting article in the WSJ today. 1055 is mentioned, but the references don't connect the dots in terms of how troubled the development is. I guess that was not their mission.

http://online.wsj.com/article/SB10001424052748704875604575280832954703628.html?mod=WSJ_NY_RealEstate_LEADNewsCollection

hey 007, when are you going to get all your crap off the sidewalk??

could give a shlt for your bldg, just want our sidewalk back

I heard from an on-site worker there was one sale of the five apts (expected to close in July 2010). Same sale info appeared in the WSJ. Will have to see if that clears the sidewalk. My guess is this one buyer will feel like a pioneer in the UES and Park. Will there be a doorman? Will the Super be hired? Will the Concerige service be fully functioning?

Hurry, Hurry, major price reduction before the auction!!! Will there be an auction on the remaining units? Even with the recent July 1st 2010 20% price reductions, demand will be hard to find for this duckling. One look inside, the prospective purchaser will see a wide open "Punch List" of to do's. And this list is not small or minor fixes, either.

Why aren't the other 3 units listed? Only two units, #2 and PH5 are listed. What's up with #3,4 and the other unit?

Per Property Shark, recent Code violations. Gives you an idea how unprofessional the late term construction crew was:

Date Description
12/28/2009 Failure to safeguard all person & property affected by construction operation.note:at time of inspection at above active site bldg complete to the roof,interior work in progress observed worker smoking in room
7/27/2009 Failure to provide unobstructed exit passageway. note: at time of inspection observed ladder being stored inside stairway on the third flr and exit egress on the 8th flr unattended. remedy: remove obstruction.
7/27/2009 Stair identification signs missing note: at time of inspection observed flr number inside stairway missing on various flr. remedy: provide flr number signs where missing.
7/27/2009 Failure to safeguard all persons during construction operations. noted at time of inspection observed light bulbs in stairway b/w the first and second flr unprotected. remedy: provide protection for lights bulb

007 - it appears you know a lot about mr davis" personal life including his country estate - who may you be????

unfortunately, many of the posting at SE are based on impressions and not on data. Why would adult people be engaged in elementry school's conversations is beyond me. Enjoy your gossip but beware of spreading baseless rumors. I do not know Mr Davis, have never met him and could not tell you if he is an honest man or not. I am just becoming more desperate at the level of the sicussion on SE and wished to stimulate your curiosity that each story has more than one side. It is not the sponser (SE) fault, it is the low level of the participants who use the site for venting personal garbage.

WSJ article covers 1055 in "The Assessor" today, Aug 2, 2010. The article deals only with its appearance, not the substance or quality of the construction. Too bad, could have been a great piece.

Anyone know the reason for unit 2 and PH5 to be "delisted"? Were they Sold, Rented or worse yet, Unsold (auction in the future)

The reason why this building and its unsuccessful development and marketing is so Interesting is that it points to the fact individuals who rely solely on the frothing of real estate market can get and will be burned. They have short term successes (strictly monetary, as quality of construction is not a priority) and if they swing a big enough stick, they will get their way. But the marketplace will eventually catch up with them.

It will be interesting to see how 1055 Park survives.

Prudential Douglas Elliman to the rescue!!! Will this third brokerage firm be able to scare up sales?

Any PDE brokers out there have any comment as to how they will be successful where others have failed.

Streetview. We at pde do not care how we do it. You may think there are distinct brokerages and we compete with each other, but it is a little known fact all the borkers and owners of said brokerages all live in a commune under LIC.

Per The Real Deal as of Aug 30th, PDE was brought in with new price targets. Here is an excerpt.

"There are no fiscal problems at 1055," Davis said.

Davis said he brought on Lazenby and Lewis because of their experience as brokers. Both Lazenby and Lewis said they typically work as buyers' brokers for those seeking new development units, something they think will be an asset when marketing 1055 Park.

"What we've done is help buyers buy other new development projects," Lazenby said, counting Superior Ink and the Time Warner Center among the developments where her buyers have bought units. "We have a completely different way of selling property."

I believe, PDE has sold Mr. Davis on the idea that this 1055 has to be sold to buyers willing to take on risk through a bulk sale, distressed sale or other means. Mr. Davis may have bought the fifth unsold unit and will need the other apts sold so his carrying costs are 1/5th rather than 5/5ths.

Per The Real Deal as of Aug 30th, PDE was brought in with new price targets. Here is an excerpt.

"There are no fiscal problems at 1055," Davis said.

Davis said he brought on Lazenby and Lewis because of their experience as brokers. Both Lazenby and Lewis said they typically work as buyers' brokers for those seeking new development units, something they think will be an asset when marketing 1055 Park.

"What we've done is help buyers buy other new development projects," Lazenby said, counting Superior Ink and the Time Warner Center among the developments where her buyers have bought units. "We have a completely different way of selling property."

I believe, PDE has sold Mr. Davis on the idea that this 1055 has to be sold to buyers willing to take on risk through a bulk sale, distressed sale or other means. Mr. Davis may have bought the fifth unsold unit and will need the other apts sold so his carrying costs are 1/5th rather than 5/5ths.

Per The Real Deal as of Aug 30th, PDE was brought in with new price targets. Here is an excerpt.

"There are no fiscal problems at 1055," Davis said.

Davis said he brought on Lazenby and Lewis because of their experience as brokers. Both Lazenby and Lewis said they typically work as buyers' brokers for those seeking new development units, something they think will be an asset when marketing 1055 Park.

"What we've done is help buyers buy other new development projects," Lazenby said, counting Superior Ink and the Time Warner Center among the developments where her buyers have bought units. "We have a completely different way of selling property."

I believe, PDE has sold Mr. Davis on the idea that this 1055 has to be sold to buyers willing to take on risk through a bulk sale, distressed sale or other means. Mr. Davis may have bought the fifth unsold unit and will need the other apts sold so his carrying costs are 1/5th rather than 5/5ths.

Lazyboy and Lewis...
First they ease you back...almost until you're in a prone position...they tell you to relax...
that's when they send in Lewis...

La La La Nice Lady...wont you buy this apartment...it for the KIDS!!!

Anything new moving on this stale project. What's the buzz? Is it re-engerized? Are the new brokers lighting it up? Do potential buyers see it in a different light?

The penthouse was just reduced from $6.1MM to $4.3MM. The listing debuted in May 2009 at 8.25MM.

Do the brokers play a game with StreetEasy's listing history of an apartment, by delisting it and then putting it back on? So it appears on SE without the down arrow when the listing price is decreased?

The PH is still expensive at 4.3mm when you consider you'll have to operate the whole building to get to your PH floor. These units are not moving!!!

eight one, i love the way you use the word debut

in this case makes me think awful things...like of the ugly daughter of some newly moneyed oil baroness trying to get social on poor child's coattails...and the whole family being ignored at the party

it will be scary where this thing clears
there is so much wrong with the concept

The 4.3mm almost appears distressed when you consider the other units are holding onto their offerings. Are the other units next? Did Unit 2 get reserved for the developer, Trevor Davis.
The PH, sadly, has little to offer for its design and layout. Very boring when you see the break that occurs on the two floors. The dining area is removed from the kitchen. The bedroom floor is just that, bedrooms.

Well the good news is Mr. Trevor Davis will have more time on his hands to polish 1055 Park Avenue, as the site known as 859-861 Lexington Ave or 132 East 65th Street (SE corner of Lex & 65th) which he coveted so much was just sold to the Toll Brothers via foreclosure.
The clock has to be ticking on 1055. No?

The empty pit on the 65th & Lex site is an eyesore so hopefully Toll does something with it

What’s wrong with this picture. Now if I was a Saudi prince could I justify spending the current pricing of 36.5mm and snap up the whole building. Not yet, wait for the high 20mm and make a deal. It will make a nice townhouse on Park Avenue.

Unit 1 original list 5/09 $ 9.300mm
9/10 $ 7.500

Unit 2 original list 5/09 $ 11.950mm
10/10 $ 7.750

Unit 3 original list 5/09 $ 12.000mm
10/10 $ 8.000

Unit 4 original list 5/09 $ 13.500mm
10/10 $ 8.950

PH original list 5/09 $ 8.250mm
1/10 $ 7.500
3/10 $ 6.100
10/10 $ 4.300

Inception total pricing = $ 55.000mm
Current total pricing = $ 36.500mm

Wow! These folks are getting serious. #1 unit (you can see living room just over the doorman) just went down from 7.5 to 6.5mm. A haircut of 30% from the original ask. OUCH!!! Total pricing is now 35.5mm. Is it enough? I would say yes, if there was a 2 to 3mm escrow for developer defects. Not saying there are any present, but this developer has a reputation. Check any of his development sites in the last 10 years.

Per the Real Deal, Nov 11, 2010.
An unidentified buyer snapped up $16.3 million in first mortgages on Trevor Davis' glass-encased condominium project at 1055 Park Avenue at the corner of 87th Street in Carnegie Hill, sources said.
Chicago-based lender Wrightwood Capital sold the note to a "high net-worth" individual this week, a source said. Wrightwood did not respond to a request for comment and the deal has not yet appeared in public records. The two mortgages with a combined face value of $16.3 million went for their full price, two people familiar with the deal said.
The high-profile project is being built by Davis' Davis Development Holdings, but more than a year after sales started, no units have closed, Streeteasy.com shows. The 12-story building received the first of two temporary certificates of occupancy in August, for six residential units. Five of those are for sale and one is a superintendent's apartment.
It was not immediately clear if Davis was making full payments on his loans. Davis did not respond to requests for comment, but told The Real Deal in August that "there are no fiscal problems at 1055."
The sale of the mortgage does not affect Davis' ownership of the property; it only means he will make loan payments to a different lender.
The loan was being marketed for about a month by David Schechtman, senior director at investment sales firm Eastern Consolidated.
Schechtman declined to comment.

Lend to own. Sounds bad.

I would not be surprised if the new lender forecloses and 1055 becomes a commercial space. It it could hold several art galleries. Strip out the kitchens and some walls.

I called this!

Good idea, but change of CO? Zoning?

It never was going to work as a residence. You live on Park Avenue so you can say "I live on Park Avenue", Not to say "My neighbor saw me in my underwear this morning".

Huge price reduction in advance of Open Houses per SE. Bring your decorator....

Unit 1 original list 5/2009 $ 9.300mm
9/2010 $ 7.500
Now 12/2010 $ 6.500mm (30% off from original)

Unit 2 original list 5/2009 $ 11.950mm
10/2010 $ 7.750

Unit 3 original list 5/2009 $ 12.000mm
10/2010 $ 8.000
Now 12/2010 $ 6.750mm (44% off from original)

Unit 4 original list 5/2009 $ 13.500mm
10/10 $ 8.950
Now 12/10 $ 7.500mm (44% off from original)

PH original list 5/2009 $ 8.250mm
1/10 $ 7.500
3/10 $ 6.100
10/10 $ 4.300

Inception total pricing = $ 55.000mm
10/2010 Current total pricing = $ 36.500mm
12/2010 Current total pricing = $ 33.800mm (39% off from original) That's as in "OUCH"

Per TRD: Could not happen to nicer guy... My guess is the 4mm Mr. Davis contributed was for Unit 2 which is not being offered. He'll live in his own foreclosure. Mr. Davis see you on Friday on the court steps!!!

Trevor Davis heads to court to stop 1055 Park Avenue foreclosure
Lawyers for developer Trevor Davis are scheduled to appear in New York State Supreme Court tomorrow morning after filing suit to stop lenders from foreclosing on his condominium project at 1055 Park Avenue.

Davis filed suit Dec. 3 in New York State Supreme Court alleging the lender, Manhattan-based Zimco Holdings, plans to illegally foreclose on his six-unit property this Friday.

"Substantial interest has been expressed by potential purchasers of the condo units and given a reasonable period of time, [Davis] would be able to sell all six condominium units in the building and satisfy the Wrightwood loans and the Zimco loan," according to the complaint.

Davis, in court documents, alleges that Zimco provided a $6 million second mortgage in March 2010 to help him complete construction at the 12-story condo, located at the corner of 87th Street in Carnegie Hill.

According to court documents, Davis borrowed $14.9 million in mortgage loans from Chicago-based Wrightwood Capital in December 2007 to develop the six-unit ultra-luxury condo.

Wrightwood declared the property's senior mortgage loan out of balance in April 2009 and eventually stopped funding the project, forcing Davis to contribute $4 million in equity to the project and borrow the aforementioned $6 second mortgage, which was secured by Davis's equity stake in the project.

Wrightwood put the loan up for sale through Eastern Consolidated and by November 2010, sold the loans to an entity called Park Avenue 1055, led by attorney Richard Golden of Miami and Caryn Schechtman, a partner at law firm DLA Piper.

"I'm not at liberty to disclose any plans at this point," Golden said.

Golden added that he is not acting as an attorney in this deal. Schechtman is the wife of Eastern Consolidated's David Schechtman.

"My representation on behalf of the lender is complete," Schechtman said.

Davis disputed the Wrightwood move, claiming in court documents that he got the state attorney general's office to approve the project, obtained a temporary certificate of occupancy and retained Prudential Douglas Elliman to market the project. Streeteasy.com records show that sales prices were slashed more than 20 percent in July 2010.

Park Avenue 1055 sent a letter to Davis Nov. 12 declaring the senior mortgage in default and by Nov. 24, Zimco sent a letter declaring the $6 million in default. In a Nov. 30 letter, Zimco notified Davis that it planned to auction off the note this Friday, at the state courthouse at 60 Centre Street.

Davis, Tarter Krinsky attorney Scott Markowitz, who represents Davis, Goldberg Weprin attorney Robert LoSchiavo, who represents the lender, and Meister Seelig attorney Matthew Kasindorf, who represents Park Avenue 1055, were not immediately available for comment.

Davis wants the lender to reduce the Minimum Sakes Price to $1,400 per square foot, which'd be enough to cover the loans. See https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=tirVQewp3Wv2XlNQo+BBtw==&system=prod

Oops, wrong exhibit. See https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=tirVQewp3WuIsHJ/rOcRxg==&system=prod

NWT, great stuff. Thanks for the reference. The letter from Mr. Davis is typical bluster. Nothing is ever his fault. Throw everything at the wall and see if it sticks. You have to love the last sentence where he refers to his previous counsel no longer represents Davis Development. Probably because he didn't pay them either.

At $1,400 psf this development barely breaks even. It's recent price cuts are at $2,100 psf. The original listings in 2009 were at $3,600. That's a haircut of 61% off original.

Was just looking at the floorplans again. Imagine everybody who worked on the building saying "WTF is he thinking?!?!" The 11' dining rooms. No central air, but instead those tacky vertical HVAC things in the corners, like in a vinyl-sided condo in Florida.

A 17' lot would maybe have worked in the 1920s, when you could get away with little elevators and one service stairway. Now, with one big elevator and double fire stairs, there's no way it's economic.

There is a real juicy document in the Davis injunction filing, besides the one NWT cited above. From the man himself, Trevor Davis, employs to tell the untold story of the High End Condo Development. It has everything to make a soap opera.

https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=tirVQewp3WsUmX48W+nTvw==&from=FiledDocsDetailURL

The defendants (Zimco) just replied today (12/9) to the injunctive request made on 12/6 by Trevor Davis. There are definitely some bad feelings among the parties. The original loan of 6mm is an exhibit. Davis was desperate. 15% interest rate, 2% origination fee, tack on another 5% default rate, not to mention an Exit fee that could be 7 figures, an extension fee plus god knows what else....

https://iapps.courts.state.ny.us/fbem/DocumentDisplayServlet?documentId=tirVQewp3WvSdRgw/9C/Qg==&from=FiledDocsDetailURL

What's at play here is the 19mm Trevor Davis or his companies put in to this property. If the debt by the foreclosure is now at 22.7mm (16.7mm + 6mm), the lenders could increase it by another 2 to 3mm with all the tack on charges. As long as the 5 apartments can go for a sum of 26mm (current pricing is 33.8mm), then Davis recovers the spread (in this case, 33.8mm less 25.7mm). He's looking at a big hit. The 19mm invested recovers south of 8.1mm.

Sigh. It's easy to make money when you have money. The Eastern Consolidated people are no fools. I imagine that there are people all over town, looking to buy mtges at the right number ...

Anyone want to give me 100m to buy up interesting mtges?

Come 2pm on Friday, the 10th of December on the steps of 60 Centre Street we will know if Mr Davis will be up a creek. He'll have no control, but I'm sure he'll keep fighting it. Zimco had the 2nd mortgage lien, but the power to exercise the takeover of the entity that owns 1055 Park Avenue. Pretty crafty of the boys over at Zimco (not to mention the 15% interest rate)

Awesome. It doesn't get much more entertaining that this. Coney Island side show comes to Park Avenue

If you want more laughs his other recently departed property on 65th and Lex, the contractor, besides claiming to being stiffed, stated Trevor Davis kidnapped him by holding him against his will and having an issue with Arabs on the job site.

Davis is the developer for 65th & Lex?

He was... See http://therealdeal.com/newyork/articles/25m-loan-on-davis-ues-parcel-for-sale

Toll Brothers is now the developer calling it 132 East 65th Street.

Thanks streetview

Generally speaking, to build a five unit condo on spec was hugely risky. I think the #s never made sense from the start. It probably only made sense if all units could be pre-sold, & even then, where's his profit? Maybe this project wouldn't have died during the bubble, but even at the height of the bubble, this would have been a tuff gig.

Zimco and Trevor Davis will be fighting this battle for awhile, but it will be with Mr. Davis's money. After tomorrow, his equity will fund any future legal battles. Zimco will be able to add charges and fees for the next year and still be able to do a workout of 1055 Park, even if it stays residential. It would make a great art gallery or commercial space.

Per TRD, the auction is off. Stay tuned. Now Trevor Davis has "partners".

this is pathetic

Per TRD, the Fat Lady has sung.

Hey good luck with selling those apartments now. You still have the creditors who will seek foreclosure through the bankruptcy. The personal bankruptcy filing by Mr. Davis must read like a tale.

Per TRD
Embattled developer Trevor Davis filed for Chapter 11 bankruptcy protection yesterday in response to a threatened sale of the $6 million mezzanine loan on the nearly complete luxury condominium 1055 Park Avenue.

Davis, who owns Davis Development Holdings, filed for personal bankruptcy, claiming mezzanine lender Zimco Holdings had taken unspecified "precipitous actions," court papers filed this week show. He listed assets of $75 million and secured debts of $50 million, including from real estate he controls through limited liability companies.

"[Davis'] Chapter 11 case was filed on an emergency basis to stop a… sale of [Davis'] interests in a limited liability company pledged to a lender," the court papers say.

Zimco had threatened to sell the mezzanine debt Dec. 10 and again Dec. 17, court papers show. Negotiations broke down between Zimco and Davis, Davis' attorney Scott Markowitz, a partner with law firm Tarter Krinsky & Drogin, said.

The bankruptcy filing blocks the sale that would wipe out Davis' personal equity in the project, bankruptcy attorneys said. The project's development entity did not file for bankruptcy.

"We are going to use the process to sell the apartments in an orderly fashion at market prices," Markowitz said.

What's up with the listings. No open houses in at least two weeks. Just around the time of the bankruptcy. Any info?

Yep there is a bit of a problem with the designs of the top 2 apartments (the duplex and the triplex).

Anyone wanting to spend multi-million dollar sums on an apartment is going to want someone where to eat apart from the eat in kitchen.... hmmm didums.

A "Sale in Contract" over the past weekend for the cheaper unit, the PH. Wow, the remaining units will fly off the shelf now.

Any ideas what the 4.3mm PH went for. A big leap of faith for the buyer.

Per TRD from the WSJ of Saturday, 29th.

Condo at Davis' 1055 Park in contract for less than lender minimum

The first of Trevor Davis' five glassy condominiums at 1055 Park Avenue has gone into contract for under $4 million, or less than half of its original, $9.3 million asking price, according to the Wall Street Journal. That works out to less than $1,850 per square foot, which brokers consider to be a distressed price for that East 87th Street location. The price is also $1 million less than the minimum sales price set by lenders in mortgage documents signed last year. Davis, who filed for bankruptcy protection last month and is facing a foreclosure suit at his own 5,623-square-foot apartment at the Empire, has been struggling financially with the project for years. Construction stalled for 10 months in 2009 after a lender cut off funding amid a dispute, and was restarted after Davis put in $4 million of his personal funds and obtained a second, $6 million loan. Meanwhile, Davis said "the building has momentum," with several other offers now on the table for its duplex and triplex units.

For the bottom fishers on Park Avenue, here is the minimum prices set in the Zimco $6mm loan agreement with Mr. T Davis, et al.

Unit 1 $ 6,325,000
Unit 2 $ 6,425,000
Unit 3 $ 6,525,000
Unit 4 $ 7,990,000
Unit PH $ 4,980,000

Per TRD (2/10/11):

Zimco Holdings, a creditor in the federal bankruptcy case of developer Trevor Davis, is urging the judge to allow court-supervised sales at 1055 Park Avenue, the luxury condominium building where it holds a $6 million loan, according to newly filed court documents.
In court documents filed today, Zimco asked Judge Shelly Chapman to allow sales to move forward, claiming that a pricing dispute with the building's senior lender at 1055 Park at 87th Street is holding up potential deals.
"We'd like the apartment sales to move forward," Kevin Nash, lawyer for Zimco, told The Real Deal. "There's an issue over current release prices. Under the mortgage documents the release prices are probably higher than what the market would bear."
Zimco argued that prior to the Davis bankruptcy filing in December, it agreed that Prudential Douglas Elliman, who Davis hired as the third listing broker at the property, would be able to sell units at $1,600 per square foot. This would generate a sell out price of $24.1 million, which Zimco says would be enough to pay off the building's senior debt and other creditors as well.
Elliman was able to sign a contract with a buyer for a 2,164-square-foot penthouse apartment for $3.8 million, or over $1,700 a foot, according to court filings. And, it has two other potential buyers interested. But, Zimco lawyers say the current senior lender is refusing to give its consent to the sales. Nash said a court hearing on the matter is scheduled for Feb. 17.

The junior lender, Zimco, now wants to crash through the floor prices which summed $32.3mm. They figure the bottom should be $24.1mm. (Remember inception pricing was $55mm). The senior lender has about +19mm skin the game and Zimco has about +7mm now. That wipes out Trevor Davis's equity, which can't make his other creditors too happy.

You have to figure this building is costing about 600k annual to run empty, with most of it payroll (min 24 hour staffing is 350k), real estate taxes (min 200k).

This is getting Messie!!!

Still NO activity at this empty shell. The interest carry on the two loans has to be $10k a day ($300,000 per month). This is burning a hole in someone's pocket.

SELL, SELL, SELLLL........