HFZ Capital Group’s luxury developers staked their futures on Bjarke Ingels’s High Line debut and lost everything. Over the past 18 months, the firm has been obliterated by foreclosures and investor lawsuits.
Pioneer’s work at The XI was governed by eight contracts for labor or materials with a total base price of about $98 million, the lawsuit says.
Prestige relied on “promises, representations and assurances” in agreements it signed with Omnibuild and HFZ to fund Pioneer’s work, but payments from the firms started to become “less prompt and less frequent” during the second half of 2019, and they began defaulting on payments altogether last December, the lawsuit says.
The suit specifically cites five agreements from October 2019 through February worth about $19 million as ones that are at issue. It claims HFZ paid about $9.2 million of the debt between January and May, and Omnibuild paid about $2 million in February, but the suit maintains the firms still owe Prestige about $8.2 million plus interest.