NEW YORK CITY-The 232 unsold units at the troubled Rector Squarecondominium conversion in Battery Park City found a buyer at anauction Wednesday, but that buyer was also the seller. Anglo IrishBank, the senior lender on the 304-unit project, put in the onlybid, $82.7 million, for the unsold units as well as its parkinggarage and commercial space. Bloomberg reports that the lender hadsought to recoup much of the $135 million it is owed.


Chris Sullivan, an attorney for Herrick, Feinstein representingthe lender, tells, “The plaintiff—Anglo Irish or itsdesignee or assignee—was the successful bidder at a foreclosureauction of the unsold units at 225 Rector todayfor $82.75 million. Anglo Irish views this as a good resultgiven the circumstances and economic landscape. The plaintiff hasthe option of selling its successful bid, or closing on the bid andtaking title to the units.”


Sullivan adds that the plaintiff has “the further option ofseeking a monetary judgment against the sponsor-borrower andguarantor for some or all of the deficiency resulting from thesale.”


The project, which was developed by YL Rector Street LLC andprincipal Yair Levy, is facing more than the foreclosure action ona $165-million mortgage by Ango Irish, originally filed in February2009. According to published reports, there are also pending legalactions by a group of unit owners and by the state attorneygeneral, the latter announced this past June. Calls to attorneysfor YL Rector Street and to the attorney general’s office were notreturned by deadline.

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Paul Bubny

Paul Bubny is managing editor of Real Estate Forum and He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.