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161 Maiden Lane, Fortis CEO Jonathan Landau and Bank Leumi CEO Avner Mendelson (Hill West Architects; Fortis; Bank Leumi)
The lender behind a troubled condominium building in the South Street Seaport is seeking to foreclose on more than $100 million worth of loans tied to the property and strip the developer of ownership.
Bank Leumi USA wants to foreclose on $120 million in loans it issued to developer Fortis Property Group to construct a 60-story luxury residence at 161 Maiden Lane.
The bank first tried selling the debt in October, claiming Fortis defaulted on its loan payments in June. But without a buyer, Leumi wants the government to sell the building, “so as to obtain the greatest return of the sale, whether sold jointly as a single parcel or sold separately as two or more parcels,” the lender said in a complaint filed last week in New York State Supreme Court.