Proposed: Shangri-La Hotel, New York - 610 Lexington Ave - by Norman Foster

[Tectonic]

Construction has started heading below grade, does anyone know what the machine in the picture does?
I see it at a several sites.
http://img156.imageshack.us/img156/5054/dsc08527ov2.th.jpg (http://img156.imageshack.us/my.php?image=dsc08527ov2.jpg)

[mkeit]

It's a rock drill-It will drill 2"-4" holes for blasting.

[Tectonic]

Oh thanks a lot.

[BrooklynRider]

...does anyone know what the machine in the picture does?...
http://img156.imageshack.us/img156/5054/dsc08527ov2.th.jpg (http://img156.imageshack.us/my.php?image=dsc08527ov2.jpg)

I think my dentist uses one of these.

[stache]

"This won't hurt..." :eek:

[v70cat]

March Deed with transfer tax paid for $110,105,000 but is it an arms length transaction?

http://a836-acris.nyc.gov/Scripts/DocSearch.dll/ViewImage?Doc_ID=2007042400093001

[Peteynyc1]

http://www.hines.com/property/detail.aspx?id=1855


Shangri-la New York
New York, NY

610 Lexington Avenue is a 61-story luxury condominium/condominium hotel, located in midtown Manhattan at the corner of Lexington Avenue and 53rd Street. Limited to only a 4,000 square-foot tower footprint, 610 Lexington may potentially rise as high as 709 feet, and will be constructed on the former site of a YWCA. The new building will be in close proximity to many of the most notable architectural landmarks in New York City - the Seagrams Building at 375 Park Avenue, Lever House, Citigroup Center, the GE building, and 53rd at Third. It includes a luxury condominium hotel of approximately 50 rooms at the base with a full complement of amenities and services including a ground floor restaurant.
Construction planning required extensive, complex land-use agreements with adjacent property owners to make sure the new building would have minimal impact on their properties. 610 Lexington has previously obtained approval of the New York City Landmark Preservation Commission. The development team is currently exploring various programming options prior to filing with the New York City Planning commission for a special permit to allow transfer of unused air rights from adjacent buildings. The design architect is Norman Foster and Partners, who have created a building that is architecturally and technically sophisticated. Construction is scheduled to begin in early 2007.

Location Map (javascript:ShowMap('http://www.hines.com/cgi-bin/mqinterconnect.exe?width=450&height=300&style=2&city=New York&state=NY&Country=&streetaddress=610 Lexington&icontitles=no&POI1name=Shangri-la+New+York&POI1city=New York&POI1state=NY&POI1streetaddress=610 Lexington&origUID=HinesMap&level=9&BuildingName=Shangri-la+New+York&testlat=&POI1iconid=556&orig_iconid=31');)>Printer Friendly (javascript:__doPostBack('lbPrinterFriendly',''))>More Results (javascript:history.back())>http://www.hines.com/toolkit_images/Project%20Photos/610%20Lexington/610%20Lexington%20rendering_lres_web.jpghttp://www.hines.com/images/spacer.gifhttp://www.hines.com/images/spacer.gifhttp://www.hines.com/images/spacer.gifhttp://www.hines.com/images/spacer.gifhttp://www.hines.com/images/spacer.gifhttp://www.hines.com/property/images/summary.gif
Address
610 Lexington
New York, NY

Location
Located on the corner of 53rd and Lexington in Midtown Manhattan
Hines' Role
Development Manager


Architect
Foster & Partners, London, England

Residential Component
107-units residential condominium

Hotel Component
50-unit condominium hotel Net Rentable Area
Residential:
250,000 sq. ft.
(23,225 sq. m.)

[Peteynyc1]

http://www.pbase.com/nyguy/image/95931981/large.jpg

[Tectonic]

Dark clouds loom...

From Crains New York Business
No Shangri-La for midtown community boards

Both Community Boards Six and Five oppose the hotel's proposal, which calls for a 206-room, 64-story hotel plus 17 private condominiums in back of the landmark Seagram building.
May 13. 2008 3:22PMBy: Lisa Fickenscher (http://www.crainsnewyork.com/apps/pbcs.dll/personalia?ID=10)

Plans by Shangri-La Hotels and Resorts to open a big hotel in midtown in 2010 are running into fierce community opposition.

A year ago the Hong-Kong based hotelier signed a management deal in New York with development partners RFR Holding and Clarion Partners to open a hotel at 610 Lexington Ave. and East 53rd St. in back of the landmark Seagram building. The site was a formerly occupied by a YWCA. Plans involve transferring air rights from the Seagram building.

Plans call for a 206-room, 64-story hotel, totaling over 200,000 square feet, plus 17 private condominiums. City zoning code requires hotels in excess of 100,000 square feet to have a loading berth for delivery trucks. The developers are proposing changing the zoning requirements in the midtown neighborhood to allow them to construct the hotel without such a dock.

Both Community Boards Six and Five oppose the proposal, currently under land use review. The community boards maintain that their districts are already heavily congested with vehicular and pedestrian traffic and that adding a hotel without a loading berth would put too much strain on the area.

The hotel’s owners dispute that contention, insisting that their architects at Foster and Partners have successfully addressed the problem.

"We've been asked to deliver a building of exquisite design to complement the Seagram Building and Lever House,” says Shangri-La regional vice president for North America, Stephen Darling. “The architects found the best solution was to manage deliveries at night rather than take away 50% of the ground floor in order to provide for loading and receiving facilities in the traditional way.”

Manhattan Borough president Scott Stringer will weigh in on the plans this week. Eventually, the City Council will consider the plan.

The current design includes 17 high-end residential condominiums ranging in size from 1,500 to 3,000 square feet that will occupy the top 10 floors of the tower – and can be reached by a 1,400 feet per minute dedicated elevator.

The Hong Kong-based hotelier is aggressively expanding outside of Asia and the Middle East with properties on the drawing board in several American cities, including Las Vegas, Miami and Chicago. http://www.crainsnewyork.com/images/diamond.gif

[Alonzo-ny]

Based on MOMA I have a new confidence in the system against community boards BS.

[stache]

that the hotel will not be able to control timewise. Asking for a loading dock is not an unreasonable request.

[Eugenius]

I think the CB's forgot to mention that this building is grossly out of scale with the surrounding low-rise neighborhood, and will cast a long shadow.

[kliq6]

That loading dock issue has been a standard in hotel construction for a long time. Whoever the Owner's rep is on this project did not do a good job discussing this project.

[Fabrizio]

The best thing that could happen would be to build the hotel WITHOUT a loading dock.

And what about the big old hotels like the Waldorf, Pierre, Plaza etc.? Don't they get along fine without loading docks?

[stache]

I'm pretty sure the Waldorf has loading capabilities underground.

[Optimus Prime]

The Waldorf=Astoria has loading bays on 50th Street where trucks can pull around and back in. You can actually see them on the street view in Google Maps.

[Fabrizio]

The others? My point is that other hotels have done without. Considering the pros and cons: I'd much rather have the street level dedicated to other uses than a loading dock.

“The architects found the best solution was to manage deliveries at night rather than take away 50% of the ground floor in order to provide for loading and receiving facilities in the traditional way.”

[Optimus Prime]

I don't disagree, I was just responding re:the Waldorf because I happened to see the loading dock walking by yesterday. I don't know about the other hotels. In general I think NYC architects and developers by this point should know how to deal with this issue (either minimizing the impact of a dock or finding a way to do without one).

[stache]

I thought I had remembered seeing loading docks at the Waldorf but I didn't want to commit. Fabs, do you think it's realistic to include a hotel that was built over 100 years ago in your list? The horseless carriage was still something of a novelty at that point. This Shangri-La has a tiny footprint and the architects are trying to tap dance their way out of a difficult situation regarding the ground floor. They're going to need a lot of grease to get around this issue.

[unknown memory]

Wonder what the verdict will come out as. >_> I've stayed at a Shangri-La in Australia. Very nice hotel both inside and out. The only issue I had was the ants in the bathroom due to Australia's warm climate.

[Fabrizio]

In general I think NYC architects and developers by this point should know how to deal with this issue (either minimizing the impact of a dock or finding a way to do without one).

I'll put my faith in Foster. Also: the Seagrams has a pristine, seamless quality... the Foster building is designed to be a complement. To muck up this ensemble with a loading dock would be a shame.

[MidtownGuy]

No loading dock!

[stache]

Taste before logic! ;)

[Alonzo-ny]

No loading dock and finding another solution is tasteful logic.

[ManhattanKnight]

the Seagrams has a pristine, seamless quality... the Foster building is designed to be a complement. To muck up this ensemble with a loading dock would be a shame.

Does the ensemble's "pristine, seamless quality" include Seagram's sizeable parking garage entrances (on both 52nd and 53rd Streets) and, I wouldn't be surprised to discover, an interior loading dock or two for Seagram itself and the Four Seasons? If the new building can partake of Seagram's air rights, why can't Foster pierce a wall or two to give it access to the existing driveways and entrances (and loading dock?). Makes sense to me.

[Fabrizio]

Let's put it this way: as a pedestrian, as a visitor strolling that corner of NYC, how would you prefer your urban experience: a street wall of shops, a restaurant, lobby entrance, windows etc. OR a loading dock?

Apparently, it is Foster who doesn't want the loading dock. As I see it, it's a grand gesture and a gift to the city. I honestly don't understand you guys... my idea of a great city block doesn't include driveways and loading docks. They might be a reality and necessity in today's world but if a builder, on his own initiative (as is the case here), wants to give the street wall back to pedestrians, we should be joyful.

Older hotels without loading docks, without indoor parking and so forth, seem perfectly able to go about their hotel business.

The community board claims that no loading dock means more vehicular traffic. That may be... but I believe that having an attractive, pedestrian friendly ground-floor is the better trade-off.


--

[stache]

but others may prefer fewer blaring horns as they walk along said street.

[Fabrizio]

Stachey, there are laws against "blaring horns".

[stache]

There is also a 'law' against constructing a hotel in NYC over 100K sq. ft. that does not include a loading dock. :cool:

[Fabrizio]

Well Stachey, we'll see what the final outcome will be, but what a shame to give 50% of this corner over to a loading dock:


http://www.pbase.com/nyguy/image/95931981/large.jpg

[stache]

I'm guessing they would place it along the westernmost edge of the lot, on the side street.

[Derek2k3]

There's a rendering of the lobby on amdrendering.com under commercial.

[Ebola]

Good find. Here. VERY nice...

http://img90.imageshack.us/img90/2039/capture222sa8.jpg


Sorry, but I never recall seeing this rendering before; it's that Steve Holl tower for the West Side, well over 750', I think...

http://img255.imageshack.us/img255/4053/capture21yx6.jpg

[MidtownGuy]

Under commercial?? I see no such section at that link. Am I blind?

[antinimby]

Click 'Portfolio', then 'Paintings'.

[MidtownGuy]

Thanks antinimby;)

[MidtownGuy]

The rendering looks beautiful, almost otherworldly. I'm anxious to see some more revealing renderings of the tower since I'll be looking at it every day from my window.

[antinimby]

Nothing above ground yet here...

http://img389.imageshack.us/img389/9711/img0146ag7.jpg


Still digging...
http://img515.imageshack.us/img515/834/img0144lp8.jpg

[avngingandbright]

What's the word on this badboy?

[stache]

Isn't it canceled?

[ASchwarz]

Nope. Cuozzo in the NY Post commented on this a few weeks ago.

It's delayed because they are switching one of their lenders.

This project is backed by arguably the two deepest pockets in U.S. real estate. Like everything else, it's getting delayed, but it's about as sure of a thing as you can find in these times.

[Tectonic]

Good, we already lost one of the new slim towers. (50 West Street)

[Tectonic]

A section of the crane arrived today:

https://community.emporis.com/images/6/2008/11/664072.jpg

[DKNY617]

Well that's a good sign. I've been looking forward to this tower and hoped that it wouldn't be cancelled. Glad to see it's still on!

[londonlawyer]

Does anyone know what's going on at the former site of the Bunny Deli on the east side of Lex?

[Tectonic]

Is that the site a few blocks south of Citigroup? If so I was wondering the same thing.
Also what are they building on the Lexington Av side entrance to the Citigroup tower.

[DKNY617]

Well I have no pictures, but I passed the site on Tuesday and there were definitely workers there, going in and coming out of the site, so there is some activity, probably working on the foundations and stuff. Some of the workers were pretty cute, I might add. I may have to pay close attention to this tower. :o:p:D

[Tectonic]

Has anyone been by this site recently? The NY location does not appear on the Shangri-La website anymore, Chicago as well (Waterview Tower project).

[londonlawyer]

I hope that something else gets built here. Foster's box was lame.

[Tectonic]

Careful what you wish for, I'll replace the word 'else' with 'better' because we just might get a Days Inn.

[avngingandbright]

Sigh.... just another architectural rape that has produced nothing. Nothing. What is wrong with this city.

[MidtownGuy]

They're still working on the site every day.

[Tectonic]

Does that mean they're still building what was originally planned?

[macreator]

Looking down the street from 53rd and 1st, I made out what looked to be a crane install taking place today. A big bay crane unit was on the block.

[antinimby]

They had to jump through bureaucratic hurdles to get this design approved. Doubt they're going to change it now.

Not too crazy about this boxy design myself though.

[stache]

What was the final word on the loading dock?

[Tectonic]

OK so they're building it. Question is, why was it removed from the Shangri-La website?

[BrooklynRider]

Typically, a hotel is not built by a hotel company. It is built by a developer who will either (1) build it to a certain quality level to attract an operator or (2) will collaborate with a hotel operator and built the hotel to suit the operator's needs.

The fact that it is not on the Shangri-la website really means nothing in terms of the building itself. Hyatt is notorious for collaborating with developers but avoiding any publicity on new developments until they near the soft opening date. They do this to ensure that the archotectural and interior design meet their quality standards.

[stache]

Sounds like they figured this out the hard way, from experience.

[MidtownGuy]

Uh oh, now there's no crane, no nothing. The big crane I saw the other day in the street, next to the site, was evidently being removed. Peeking through an opening in the fence, I now see nothing but a huge empty pit.

[Tectonic]

Ohh Nooooo!

[BrooklynRider]

Maybe it's going to be a Howard Johnson's, in which case, it is just about complete - just needs a reception desk.

[Tectonic]

LOL!!! Hmm location is interesting too, right across the street from Citi's World Headquaters.

[stache]

Citibank might be taking a powder soon as well. :p

[Jeffreyny]

Nothing going on now at the site. The crain was removed and I haven't seen anyone there since. Although I suppose no one could have predicted the economic downturn, it's a real shame they couldn't have at least spared the YWCA that they they tore down only to be replaced by a walled pit. Only thing missing now is some graffiti on the walls to officially make it urban blite!

[MidtownGuy]

This is terrible news for my neighborhood and that stretch of Lexington, which was going to benefit from the night time activity of a hotel. I was really looking forward to a new injection of life on the streetscape there. Finally, I thought, a project in the hood without a bank planned at the base, we were getting a bar or nightclub! Now the big empty pit is an eyesore and a double shame because the YWCA they tore down was nice.
:(Really really bad news.

[Tectonic]

Just a hole:

http://farm4.static.flickr.com/3349/3436394664_d54b68635b_o.jpg

[avngingandbright]

I hope everyone involved is very proud of themselves.

[ASchwarz]

Related is negotiating with unions for cuts to construction costs, so nothing will happen until they reach an agreement.

[BrooklynRider]

Why wouldn't they be renegotiating material costs instead of hitting the workers for cost savings?

[econ_tim]

Do we know they aren't doing both?

[BrooklynRider]

I guess my reaction was to this project and Ratner's Beekmen Tower allegedly pressuring the unions to renegotiate with the threat of killing the projects or reducing the scope.

[londonlawyer]

Unions in NY are a joke. They're corrupt and drive up prices. In Charlotte, there seem to be no unions as 99.999% of the workers are immigrants and costs are manageable.

[BrooklynRider]

Your baseless generalizations are tiresome. Your posting history makes it clear that you have an predisposition to oppose the advancement or protection of worker's rights, affordable housing or housing rights, and any other point of view or opinion that does not support and agree with your often crass and vulgar assertions.

I guess you can say that this last post is my breaking point. Start supporting these claims with reliable documentation or knock it off.

[ZippyTheChimp]

^
It's almost laughable how the employees of "white-collar companies" have gotten a pass from disparaging remarks during the economic mess that their companies have created. But it's a different story with union and "blue collar" workers. Hell, even the CEOs of union companies are asked to resign by the government, while the CEO of Citigroup tells Congress that "we get it," and then goes out and authorizes $10 million for new executive offices.

Wonder what percentage of mortgage foreclosures were caused by union workers making good money.

[londonlawyer]

Your baseless generalizations are tiresome. Your posting history makes it clear that you have an predisposition to oppose the advancement or protection of worker's rights, affordable housing or housing rights, and any other point of view or opinion that does not support and agree with your often crass and vulgar assertions.

I guess you can say that this last post is my breaking point. Start supporting these claims with reliable documentation or knock it off.

You're ridiculous and rude. I'm not entitled to express a point because I don't share your proletariat point of view?

Unions are corrupt and anachronistic. They almost led to the demise of airlines and to GM. When GM is in bankruptcy court, all of the perks that the UAW forced down GM's throat will be gone.

White collar workers aren't unionized, so why should blue collar workers be?

[ASchwarz]

Can we get back on topic? Some unions suck (no, not all), and some developers/management suck (not, not all).

IMO, it's reasonable to ask for some union givebacks, just as it's reasonable for the big shots to take a big hit. These are obviously unusual and temporary circumstances.

[BrooklynRider]

Let's follow Schwarz's suggestion and get back on topic. Take the personal arguments to PM and resolve them.

Mucho gracias!

[stache]

Works for me!

[londonlawyer]

http://bp1.blogger.com/_0BeiCd4Pq2g/RszdkXqC4CI/AAAAAAAAACg/PIvHiohejWM/s320/Austin+Powers.jpg

[MidtownGuy]

If there's to be no Shangri La forthcoming, my fantasy would be to have a handsome little park there. I know...it would never happen, but it's my neighborhood and we could use a patch of greenery.

[Tectonic]

How about a swimming pool in the summer and an skating rink in the winter:

April 30, 2009 8:55 AM Luxury hotelier abandons NYC

Hong Kong-based Shangri-La is the latest overseas brand to rethink plans for the market.

http://s9.addthis.com/button0-share.gif (http://www.addthis.com/bookmark.php) http://www.crainsnewyork.com/images/pt_print2.gif Print (http://www.crainsnewyork.com/article/20090430/FREE/904309993/1050&template=printart) http://www.crainsnewyork.com/images/pt_email2.gif Email (http://www.crainsnewyork.com/apps/pbcs.dll/art_tips?Date=20090430&Category=FREE&ArtNo=904309993&SiteData=CN&Profile=1050&SectionCat=&template=emailart) http://www.crainsnewyork.com/images/pt_comment.gif (http://www.crainsnewyork.com/apps/pbcs.dll/article?AID=/20090430/FREE/904309993/1050#commentbox) Add a comment (http://www.crainsnewyork.com/apps/pbcs.dll/article?AID=/20090430/FREE/904309993/1050#commentbox) By Lisa Fickenscher (http://www.crainsnewyork.com/apps/pbcs.dll/personalia?ID=10)

Hong Kong-based Shangri-La Hotels could be pulling out of a deal to operate a luxury hotel and condominium property on Lexington Avenue in midtown.
Late last year, construction at the site stopped and Shangri-La has since removed any mention of the New York property from its corporate Web site.
The project is located in back of the landmark Seagram Building at East 53rd Street, where a YWCA used to be. The developer on the building is RFR Holding.
Shangri-La’s plans called for a 206-room, 64-story hotel plus 17 condominium apartments. But the hotel company ran into fierce opposition from Community Boards Five and Six over the building of a loading dock for delivery trucks. The community boards were concerned about vehicular congestion in an already busy corridor.
Shangri-La, which declined to comment, was scheduled to open its flagship in Manhattan next year. Recently, it walked away from its hotel project in Chicago.
The luxury brand is not the only hotelier abandoning New York in the midst of a tourism slowdown. Last month London-based Orient-Express Hotels nixed plans to build a property in midtown at the site of the former Donnell Library, citing the poor economy and difficulty in obtaining credit.

[londonlawyer]

This is great news.

Rosen the Schmuck is getting burned, which he deserves for razing the nice building that was located on this site, and the idiots in the community board who oppose everything in life and getting stuck with an empty pit on Lex.!

[ablarc]

^ That is good for the rest of us ... right? ... who don't care so much about teaching the schmucks lessons?

[MidtownGuy]

Well it's terrible for those of us who live here- we're stuck with a really ugly empty lot on Lexington; when you exit the train station at 53rd it's one of the first things you notice, like a missing tooth.
The loss of the Donnell Library is also a blow, and even more so because the emptied building is in a high profile spot across from MOMA. It's a handsome building too, just like the YWCA was. The library was well used, by myself included.
So, the way it works in this society is that scumbag developers can tear things down and clear things out when they don't even have the money in place to build what they propose? It doesn't seem right. Make 'em show us the money and sign some kind of guarantee before they can come and rip our neighborhoods apart.:mad:

[ASchwarz]

That news article is horrible. Where is it from? Who wrote such trash?

It first says Shangri-La COULD be changing its plans, but the only evidence given is that the New York location is not on the website (but it never was on the website, as far as I know. It certainly wasn't listed last year).

Then it weaves into all sorts of non-sequiturs about prior zoning changes (all of which were approved), and the cancelled Chicago location (which is a totally different situation) and then concludes, in fact, that the project WAS cancelled or altered, even though there (still) is no reasoning given for such a conclusion.

What I do know about the project is that RFR had temporarily stopped all projects in NYC while it was renegotiating with unions. I have no idea on the status of these union negotiations.

[londonlawyer]

^ That is good for the rest of us ... right? ... who don't care so much about teaching the schmucks lessons?

There are many empty lots in prime locations in the city. Hopefully, Rosen will get Macklowed (i.e., this site will be foreclose by the lenders) and something better will be built there. Perhaps losing money will teach this filthy pig a lesson before he razes the nice old buildings on 5th that he planned to replace with a glass box.

[Jeffreyny]

Well it's terrible for those of us who live here- we're stuck with a really ugly empty lot on Lexington; when you exit the train station at 53rd it's one of the first things you notice, like a missing tooth.
The loss of the Donnell Library is also a blow, and even more so because the emptied building is in a high profile spot across from MOMA. It's a handsome building too, just like the YWCA was. The library was well used, by myself included.
So, the way it works in this society is that scumbag developers can tear things down and clear things out when they don't even have the money in place to build what they propose? It doesn't seem right. Make 'em show us the money and sign some kind of guarantee before they can come and rip our neighborhoods apart.:mad:

I couldn't agree with you more! They raised a nice building without money in place to build?
How does this happen? It should be illegal! What an eyesore for midtown Manhattan!
I fear that pit will be there for years to come!

[stache]

If push came to shove they would stick a one story taxpayer there for a while.

[ablarc]

Or a parking lot.

[TREPYE]

They raised a nice building without money in place to build?
How does this happen? It should be illegal!

Couldn't agree more. How do you destroy a part of NYC without having a replacement?? It should be a city law that if you are going to raze a building older than, say....50 years old, you HAVE to demonstrate the funds for its replacement. This has occurred way too much.

[ablarc]

You shouldn't be allowed to raze ANY building till you have the funds to replace it. The city needs to be made and kept complete.

[londonlawyer]

Couldn't agree more. How do you destroy a part of NYC without having a replacement?? It should be a city law that if you are going to raze a building older than, say....50 years old, you HAVE to demonstrate the funds for its replacement. This has occurred way too much.

I think that the law should make it next to impossible to raze pre-WWII buildings. Period.

[BrooklynRider]

I agree with Ablarc.

[antinimby]

I think that the law should make it next to impossible to raze pre-WWII buildings. Period.Without any exceptions?

[BrooklynRider]

I think an application of Darwin's Theory of Evolution works best: Survival of the Fittest.

[stache]

From the Real Deal online -

Rosen faces foreclosure suit at hotel site

June 19, 2009 04:40PM By Adam Pincus (http://therealdeal.com/looks/byq/Adam%20Pincus) http://s3.amazonaws.com/trd_three/images/94558/rosen_articlebox.jpg Developer Aby Rosen faces foreclosure at 610 Lexington Avenue hotel site.

The lenders for the Midtown development where Aby Rosen's RFR Holding was slated to build Shangri-La Hotel, New York, have filed to foreclose on $144.2 million in loans and fees used to buy, plan and develop the site, court records say.

ING Real Estate Finance and Swedbank sued to foreclose on the loan to Park Avenue Hotel Acquisition, a company registered at the address of developer Aby Rosen's RFR Holding, which was slated to develop the Shangri-La Hotels and Resorts' tower at 610 Lexington Avenue, at 53rd Street.

The borrower was unable to refinance its loan by an April 8 deadline, and so ING determined the loan was in default on June 15, the filing says.

Crain's reported (http://www.crainsnewyork.com/article/20090430/FREE/904309993%20) in April that Shangri-La had pulled out of the New York project, where the hotel and RFR Holding planned to build a 64-story hotel tower with residential condominiums on the top 10 floors, next to the landmarked Seagram Building at 375 Park Avenue at 53rd Street. Shangri-La was to manage the hotel under a 2007 development and operating agreement signed with RFR Holding.

The default could be costly for Rosen, his RFR partner Michael Fuchs and Shangri-La Asia Limited, all of whom are named in recourse carve-out provisions as guarantors, the court papers filed June 16 in state Supreme Court say.

RFR Holding, Shangri-La and ING did not respond to requests for comment.

RFR Holding owns significant properties in New York City such as Lever House and the Seagram Building. Although considered a stable company, a loan to an RFR Holding-affiliated entity that owns a retail condo at 60 East 55th Street, was listed as delinquent (http://therealdeal.com/newyork/articles/delinquencies-fall-in-manhattan-securitized-loans-sheffield57-makes-may-list-riverton-houses-moskowitz-kent-swig) in May, according to loan tracking firm Trepp.

The original $145 million loan issued by Lehman Brothers Holdings in April 2007 to the RFR affiliate was composed of a $98.64 million acquisition loan; a project loan of $19.3 million for pre-developments costs; and a building loan of $27 million to fund demolition and construction costs, the court filing says.

The note had an original repayment date of October 8, 2008, with an option to extend to April 8.

That loan was transferred in stages from Lehman Brothers and related entities to ING Real Estate Finance, a division of the Dutch ING Group; and the Swedish Swedbank, in a shift that was completed by November 2008.

David Arena, president of Grubb & Ellis New York, who was not involved in the property, said falling property values would bring more defaults of this type.

"It is all maturity default risk. The loans are going to come due, and values will be way below what the current owner is in for, and the buildings are going to go back to the banks and financial service companies," he said.

[londonlawyer]

Here's some great news about Rosen getting sued! This filthy pig deserves it. Hopefully, he invested heavily with Madoff too.

Crains NY

July 16, 2009 3:40 PM

RFR’s Rosen and Fuchs sued for $145M

Lenders sue to recoup at least $145 million personally guaranteed by Aby Rosen and Michael Fuchs after Shangri-La hotel project goes into foreclosure.
Share Print Email Comments(2) By Theresa Agovino RFR Holding partners Aby Rosen and Michael Fuchs are being sued for at least $145.6 million to repay a loan they personally guaranteed on a hotel project that is now in foreclosure.

Lenders ING Real Estate Finance and Swedbank AB filed to foreclose on the hotel project last month, but amended the complaint last week to exercise a clause that makes the duo as well as others personally liable for the loan, late fees and other expenses.

According to last week’s suit filed in New York State Supreme Court, the borrowers failed to pay $278,759 in real estate taxes which put them in breach of the credit agreement and paved the way for lenders to seek the full amount of the debt.

Messrs. Rosen and Fuchs were planning to build a hotel with Shangri-La Asia Limited on Lexington Avenue and 53rd Street. Shangri-La is also named in the suit. Lehman Brothers made the original $145 million loan in April 2007 but by last November it was shifted to ING and Swedbank.

The two men are well-known in real estate circles, owning two landmark properties favored by hedge funds and financial firms: Lever House and the Seagram Building. Additionally, Mr. Rosen is an avid art collector. Some experts were surprised that the sophisticated duo would agree to personally guarantee a loan since real estate developers are known to finance projects largely with other people’s money.

Experts say the lawsuit seeking damages from individual developers is a sign of lenders’ growing exasperation with delinquent borrowers as missed payments and foreclosures become increasingly common. Whether such suits will become a regular occurrence will depend in part on whether borrowers personally guaranteed their loans.

“This is an unusual step to take by the lenders,” said Ross Moskowitz, a partner at Stroock & Stroock & Lavan. “There’s not much precedent because personal guarantees are not the norm.”

Shangri-la did not have immediate comment and Messrs. Rosen and Fuchs could not be reached.

[Derek2k3]

How is that good news?

[londonlawyer]

I was looking at this site on Google maps and recalled that this property could have been built to around 800 feet as of right. (See below.) I wonder if a legally binding transfer actually occurred prior to foreclosure, such that Rosen's air rights are now part of the parcel, and a new developer could build to 811 feet. I hope so, and I hope that he/she selects a better design that Foster's box.

From cityrealty.com:

The city’s Landmarks Preservation Commission unanimously approved today a declaration supporting an application by RFR Realty LLC, to the City Planning Commission for a special permit waiving setback and height regulations for the transfer of air rights from the Seagram Building at 375 Park Avenue, which it owns, to an adjacent site at 610 Lexington Avenue for the erection of a 709-foot-high, mixed-use tower....Mr. Rosen said that the new tower will only utilize about 90 percent of the available, unused air rights from the Seagram Building, Mr. Foster said that if the building were erected "as of right" it would be about 811 feet high....

Copyright © 1994-2005 CITY REALTY

[NoyokA]

They would need to buy Rosen's development rights from the Seagram Building to do so.

[londonlawyer]

Thanks, Stern.

I was wondering if Rosen had already transferred the rights to this site and lost them upon foreclosure or if he still owned them. You seem to think that he does. Do you know or are you guessing? I hope that he no longer owns them.

[NoyokA]

I'm not exactly sure of the financing structure. I don't know if he can revert the rights back to himself and his ownership of the Seagram Building or if they're part of the development package (land+airrights) which I guess the lenders will try to auction off now.

[londonlawyer]

Thanks, amigo!

[MidtownGuy]

Yesterday and today there was a bulldozer on the site, a peek through the fence reveals everything is being evened off with gravel. It will be so sad to see a parking lot go there. It's the first thing visible when coming out of the 53rd st. station from the AirTrain/Subway.

[gundam00]

Hopefully this lot won't become a weeded in mess like the Drake Hotel site.

[MidtownGuy]

It's a sad location for this to happen....such a high profile intersection, right at a major train station and so many hotels around, it looks just awful. I asked a guy at the site today if it was going to be a parking lot, he said "I think so". Whatever that's worth. Now I see the ghost of the noble YWCA every time I walk past.

[Stroika]

That's awful to hear. On the eve of Thanksgiving, I think we can all agree: Thanks for nothin', Aby Rosen.

[RandySavage]

Not just thanks for nothing. Thanks for destroying a beatific piece of New York City and leaving only dust in your wake:
http://www.pbase.com/nyguy/image/77640939/large.jpg

[Tectonic]

Yeah, very senseless. Destroy a building and have nothing to replace it with, especially in such a location.

[londonlawyer]

The really sickening thing though is that it was a beautiful building. Rosen is a schlong. I hope he does not raze the beautiful building on 5th and 43rd.

[Jeffreyny]

it's really so sad. I walk by it everyday and remember watching them tear that down and although I was sad to see it go the anticipation of what would rise made it less painful...
and today we have a gravel pit with possible parking lot on the site.
We can only hope that "someday" something worthy of that prominent site will rise.

I hope they're proud of themselves.

[londonlawyer]

I wonder if the foreclosure actually occurred or if he managed to retain the site somehow. Alternatively, maybe a new entity owns the site and retained Rosen as the developer.

http://www.nytimes.com/2010/12/12/realestate/12SqFt.html?_r=1&ref=realestate

Square Feet | The 30-Minute Interview
Aby J. RosenBy VIVIAN MARINO
Published: December 9, 2010

http://graphics8.nytimes.com/images/2010/12/12/realestate/SQ-FEET/SQ-FEET-articleInline.jpg
...


Q What’s going on with 610 Lexington, proposed site for the Shangri-La Hotel, which got caught in the collapse of Lehman Brothers, the original lender?

A We’re still building a hotel there. We own the building next door, Seagrams. When the Lehman dust settles, this will settle....

[Derek2k3]

http://farm3.static.flickr.com/2430/5727857872_9ec308deea_b.jpg
mrbone (http://www.flickr.com/photos/mrbone/5727857872/sizes/l/in/pool-63028098@N00/)

[MidtownGuy]

^Am I allowed to say that I think the hue/saturation levels in that photo are hideously jacked up. Ends up looking strange, not in a good way IMO.


I really hope this project comes back alive. They left a gaping hole in our streetscape in this neighborhood and it looks horrible.

[ZippyTheChimp]

Mr Bone?

[gundam00]

January 13, 2012 06:00PM
By Adam Pincus (http://therealdeal.com/looks/Adam%20Pincus/by)


Aby Rosen’s RFR Holding (http://therealdeal.com/blog/2011/07/11/aby-fires-back) is in contract to buy back the debt for far less than the $144.2 million face value at the Midtown development site at 610 Lexington Avenue, a source familiar with the deal said.

Although the vacant property, where Rosen sought to build the Shangri-La Hotel, New York, is in contract to RFR Holding, it was not clear when the sale would close, the source said. The site is adjacent to Rosen’s iconic Seagram Building, at 375 Park Avenue.


In 2007, RFR borrowed $144.2 million from Lehman Brothers Holdings for the development of the 64-story hotel at the corner of Lexington Avenue and 53rd Street. However, the project stalled during the credit crisis. First, Lehman transferred the loans to ING Real Estate Finance in November 2008, city property records show. Then in April 2009 it was reported that Shangri-La had withdrawn from the project. Two months later, ING filed to foreclose (http://therealdeal.com/blog/2009/06/19/developer-aby-rosen-faces-144m-foreclosure-suit-at-midtown-hotel) on the loan.


Rosen’s company is expected to buy the note for about $75 million, but he had competition from various investors including Roy Stillman’s Stillman Development International, which signed a contract for $80 million, but did not close, according to another source.


The site has rights for just over 200,000 square feet of development, information from PropertyShark.com shows.


RFR did not respond to a request for comment, and Stillman Development and ING declined to comment.


Even as some of Rosen’s projects have been delayed by the downturn, hotel assets have strengthened (http://therealdeal.com/issues_articles/inn-fashion) in value over the past year in Manhattan.

[gundam00]

Last Updated: 1:01 AM, March 14, 2012
Posted: 11:49 PM, March 13, 2012


Read more: http://www.nypost.com/p/news/business/realestate/commercial/whole_foods_in_billy_burg_MXKSFxcmtNZjDu2Aw7M4vL#i xzz1p9S4686u


In what we hope will be a first step towards a new, classy skyscraper, Aby Rosen and Michael Fuchs have recapitalized their major 610 Lexington Ave. stalled development site and modified a loan with RCG Longview.

Documents show RCG Longview, a nimble funding group founded by Peter Cohen, Jeffrey J. Feil, Jay Anderson, Jonathan Estreich, Michael Boxer and Mort Olshan, took over what was a $66,395,143 loan from ING.
Before it went belly-up, the original lender, Lehman Bros., had grown several loans to $145 million prior to ING taking over. RCG further reconstituted a mezzanine loan, leaving RFR owing a mere $64,735,264.
RFR also transferred the property to another entity with a value of $78,041,438.
After Lehman and the markets tanked, a deal with Shangri-La hotels to anchor a towering new luxury condominium project faded into the vacant lot.
In an e-mail, an RFR spokeswoman said the company bought back the 610 Lexington Ave. note and is starting to redevelop the site as a hotel and residential condominium development, as previously planned.“Currently we are going to market to source an appropriate hotel operator,” she said.

[Tectonic]

This site is too Prime to just sit there.

[londonlawyer]

It would be nice if they ditched Foster's design.

[futurecity]

Something bold and tall clad in light colored concrete or stone would cast a nice contrast here among all the steel and glass boxes. However, we'll probably get just that, a glass box.

I'll take the Foster tower though, it is high quality.

[londonlawyer]

Other than 2 WTC, a lot of Foster's recent work is nothing special. His new lowrise for the Legal & General site stinks.

[DUMBRo]

Other than 2 WTC, a lot of Foster's recent work is nothing special. His new lowrise for the Legal & General site stinks.

Couldn't agree more. Along with Renzo Piano, I think that generation of starchitects has run its course.