Volume 22, Number 06 | The Newspaper of Lower Manhattan | June 26 - July 2, 2009
By Patrick Hedlund
Bankrupt in Soho
The fate of a Soho residential project is in question after developers of the planned seven-story building declared bankruptcy last week.
The proposed 58-unit project, slated for a parking lot at the corner of Canal and Greene Sts. in the Soho Cast-Iron Historic District, sought to emulate the character of the neighborhood through its aluminum-panel facade.
Brooklyn-based developer Judo Associates received approval for the project, dubbed 1 Greene St., nearly two years ago, and the developer filed for bankruptcy protection last week, Crain’s reported.
Designed by architect Gene Kaufman, the building would contain a total of 80,000 square feet and has been valued at $25 million. The site currently houses a parking lot.
Tribeca foreclosure threat
A new luxury co-op building in Tribeca has been threatened with foreclosure after the project’s financier slapped the developer with a lawsuit over $37.5 million in unpaid loans.
The developer, R Squared Real Estate, recently completed construction on 34 Leonard, a project featuring 16 loft-style residences with ground-floor retail near Leonard St. and W. Broadway.
The commercial real estate investment firm iStar Financial charged the borrower with defaulting on a $29.2 million building loan and an $8.3 million project loan, according to an article in The Real Deal citing a May 26 lawsuit filed in New York State Supreme Court.
In the suit, iStar claims that the developer defaulted in mid-April, with a balance of $32.3 million in principal, fees, interest and other expenses. The suit also names the property owner which has the lease on the site.
Citing the lawsuit, The Real Deal reported that at least three contractors have filed mechanic’s liens on the property since April, including a crane, steel and construction company.
Prices for units at 34 Leonard range from $1.98 million for one-bedrooms to $8.45 million for a penthouse apartment.
Hudson Square chic
Celebrated fashion designer Brian Reyes has moved his eponymous label to Hudson Square as part of a five-year lease agreement.
The deal gives Reyes 4,553 square feet at 304 Hudson St., between Spring and Vandam Sts., nearly quadrupling the size of his former Flatiron offices.
The designer, who spent the last few years on lower Fifth Ave., had previously stated his desire to work out of space closer to his Tribeca home. Reyes now joins fashion tenants Y’s America (Yohji Yamamoto) and Atelier Fashion at the address.
“Hudson Square has established itself as a center for creative businesses from broadcasting and advertising to fashion,” Jason Pizer, a senior vice president of leasing for building owner Trinity Real Estate, said in a statement. “Mr. Reyes has an exceptional reputation and a growing brand, and we are delighted to welcome him to our neighborhood.”