Stein­way Tower Owner Loses Bid to Re­tain $1B Condo Project

The Jewish Voice - - NEW YORK - By Charles Bern­stein

On Tues­day, Au­gust 29, in state Supreme Court, Am­base’s last drop of hope to re­tain its tower now un­der con­struc­tion on Bil­lion­aires’ Row may have been dis­solved.

With de­vel­op­ers Michael Stern of JDS De­vel­op­ment and Kevin Maloney of PMG, Am­base owns the build­ing lo­cated at 111 West 57th Street, which is bet­ter known as Stein­way Tower. The com­pany has been try­ing to stop the $1 bil­lion project from be­ing seized by the lender Spruce Cap­i­tal by se­cur­ing an in­junc­tion.

In­stead, what is re­ferred to as a strict fore­clo­sure was per­mit­ted by the court to pro­cede. Ac­cord­ing to Crain’s, “Un­der this ar­range­ment Stern and Maloney vol­un­tar­ily hand over own­er­ship of the project to Spruce, al­low­ing the planned 1,400-foot-tall ul­tra­lux­ury tower to be trans­ferred to new own­ers. In its suit Am­base claimed Stern and Maloney had agreed to the strict fore­clo­sure with Spruce Cap­i­tal in or­der to wipe out Am­base’s $66 mil­lion in­vest­ment in the project. Am­base’s lawyer, Stephen Meis­ter, al­leged that Stern and Maloney planned to join Spruce in a new part­ner­ship once Am­base had been purged from the deal. Am­base is still en­gaged in a sep­a­rate law­suit against Stern and Maloney over cost over­runs re­lated to the project.”

On of Crain’s sources con­firmed that now that Am­base has lost in court, Maloney and JDS De­vel­op­ment, Stern’s firm, will ei­ther team up with Spruce Cap­i­tal or bring an­other part­ner in to re­fi­nance the project. The source said, “It will al­ways be a JDS build­ing.”

De­vel­op­ers Michael Stern of JDS De­vel­op­ment and Kevin Maloney of PMG own Stein­way Tower with Am­base. (Photo Credit: JDS De­vel­op­ment)

The con­struc­tion site for

111 West 57th Street, pho­tographed on June 6, 2015, by Justin A. Wil­cox of Wash­ing­ton, D.C. (Photo via Wikipedia)

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