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