The Alexico Group, which is headed by Simon Elias and Izak Senabar, has lost control of the Flatotel and the Alex Hotel following a foreclosure proceeding last month by Judge Joan Madden of the New York State Supreme Court, according to an article by Craig Karmin in today's edition of The Wall Street Journal.
The judge noted that while Alexico failed to pay the hotels' mortgage payments or real-estate taxes for two years, the article continued, "the developer's principals paid themselves $570,000 in management fees," the article said, adding that the principals "transferred hotel funds to various affiliated properties" including their "flagship property, the newly renovated Mark Hotel on the Upper East Side."
The article said that the court appointed a receiver for the Flatotel and the Alex hotels as part of a foreclosure action filed last year by a group of creditors that included the Atlas Capital Group, the Rockpoint Group and the Procacianti Group, all of whom had purchased the debt from Anglo Irish Bank.
Alexico had argued in its court papers that Anglo Irish had consented to the transfers between affiliated properties and that there were multiple agreements that the hotels could use funds interchangeably, the article said.
The judge noted that while Alexico failed to pay the hotels' mortgage payments or real-estate taxes for two years, the article continued, "the developer's principals paid themselves $570,000 in management fees," the article said, adding that the principals "transferred hotel funds to various affiliated properties" including their "flagship property, the newly renovated Mark Hotel on the Upper East Side."
The article said that the court appointed a receiver for the Flatotel and the Alex hotels as part of a foreclosure action filed last year by a group of creditors that included the Atlas Capital Group, the Rockpoint Group and the Procacianti Group, all of whom had purchased the debt from Anglo Irish Bank.
Alexico had argued in its court papers that Anglo Irish had consented to the transfers between affiliated properties and that there were multiple agreements that the hotels could use funds interchangeably, the article said.
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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