A U.S. Bankruptcy Court judge yesterday approved a plan by developer Trevor Davis to resume selling apartments at his troubled condominium project, 1055 Park Avenue, on the Upper East Side of Manhattan, according to an article today by David Jones at therealdeal.com.
The ruling by Judge Shelley Chapman should help resolve financial problems between Davis and his lenders, who were about to foreclose on the troubled condominium in late December when Davis suddenly filed for personal bankruptcy protection.
Chapman ordered Davis to close the sale of five of his six apartments, which are currently under contract, by June 14th, which would generate $19 million in proceeds. Those funds must initially be used to pay off the $18 million debt he owes his senior lender, an entity called 1055 Park, controlled by Austrian investor Andreas Badian.
The remaining $937,000 from the first five units must be used to pay off expenses. Davis was ordered to enter a contract for the sixth and final apartment by June 10, and close by June 14.
That deal that is expected to generate $5 million in proceeds, of which $4.5 million must be used to pay off Zimco, a Manhattan-based real estate firm led by Mikhael Kurnev, a former executive at Coalco, the developer of the Element condominium.
Court documents identified the buyer of the final apartment as Drew Greenwald. Greenwald was not immediately available for comment.
As The Real Deal previously reported, Davis reached an agreement with New Valley, the 50 percent owner of Prudential Douglas Elliman, to refinance the property, contingent on the simultaneous closings of units at the building. Markowitz said the five initial apartment sales - all cash - are scheduled to close this weekend.
The ruling by Judge Shelley Chapman should help resolve financial problems between Davis and his lenders, who were about to foreclose on the troubled condominium in late December when Davis suddenly filed for personal bankruptcy protection.
Chapman ordered Davis to close the sale of five of his six apartments, which are currently under contract, by June 14th, which would generate $19 million in proceeds. Those funds must initially be used to pay off the $18 million debt he owes his senior lender, an entity called 1055 Park, controlled by Austrian investor Andreas Badian.
The remaining $937,000 from the first five units must be used to pay off expenses. Davis was ordered to enter a contract for the sixth and final apartment by June 10, and close by June 14.
That deal that is expected to generate $5 million in proceeds, of which $4.5 million must be used to pay off Zimco, a Manhattan-based real estate firm led by Mikhael Kurnev, a former executive at Coalco, the developer of the Element condominium.
Court documents identified the buyer of the final apartment as Drew Greenwald. Greenwald was not immediately available for comment.
As The Real Deal previously reported, Davis reached an agreement with New Valley, the 50 percent owner of Prudential Douglas Elliman, to refinance the property, contingent on the simultaneous closings of units at the building. Markowitz said the five initial apartment sales - all cash - are scheduled to close this weekend.
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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