Curbed Bauhouse's Sutton Place Tower At Risk Of Foreclosure: Sources by Evan Bindelglass
The Norman Foster-designed residential tower Bauhouse Group has planned at 426-432 East 58th Street might be in trouble. Bauhouse has $128.8 million in loans from Gamma Real Estate, which started taking steps to foreclose on the project, Crain's reports. But Bauhouse claims the action is premature. "The lender's flawed and incomplete legal steps to rush the auction are commercially unreasonable and will not withstand judicial scrutiny," the organization said in a statement, adding that there are other sources of capital competing to fund the development's next step and pay off this debt.
Bauhouse's Joseph Beninati has been trying to raise money for the project, which apparently now has a name: Sutton 58, but there are potential issues to overcome. As Crain's points out, one is an excess of high-end residential units. Another is a proposal from the East River Fifties Alliance to impose a 260-foot height cap. Sutton 58's proposed height as of late 2015 was 900 feet for about 80 stories. A report from The Real Deal said that the floor count had been cut to 62, but there was no word on whether that meant a cut in overall height or an increase in floor heights.
· Developer of controversial supertall condo tower faces foreclosure [Crain's]
· East Side Rezoning Plan Aims to Halt Sutton Place Supertall [Curbed]
· 900-Foot Sutton Place Tower Will Get Major Height Cut: Sources [TRD]
· Sutton Place's 900-Foot Tower Is One Step Closer to Rising [Curbed]
· All Sutton 58 coverage [Curbed]