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Thread: 159 West 24th Street - Carriage House

  1. #1

    Default 159 West 24th Street - Carriage House

    Anyone know anything about this development?

  2. #2
    Disgruntled Optimist lofter1's Avatar
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    CURBED has some posts on it.

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    Crabby airline hostess - stache's Avatar
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    Default From the Real Deal -

    August 27, 2009 12:30PM By Adam Pincus Carriage House Chelsea at 159 West 24th Street
    The developer of a troubled luxury condominium conversion project in Chelsea is facing lawsuits from two lenders for a total of roughly $20 million.

    Flatiron District-based Broad Channel Builders converted a former 1901 horse stable building at 159 West 24th Street at Seventh Avenue into 24 high-end apartments.

    But in the midst of the economic downturn, Carriage House Chelsea has not been able to repay its loans.

    In 2006, Broad Channel took out $14.5 million in acquisition and development loans from Midfirst Bank, based in Oklahoma. But after the borrowers failed to repay by May 1, after two extensions, Midfirst Bank filed suit in June in New York State Supreme Court to foreclose on the loan.

    James Kuhn, president of commercial brokerage Newmark Knight Frank, was appointed receiver in mid-June, subsequent court filings show.

    And this month, Midtown-based lender Terra Capital Partners sued for repayment of a $3.1 million, one-year mezzanine construction loan, state court papers filed Aug. 14 say.

    With fees and interest, the two suits seek a combined $19.47 million, the filings show.

    Making matters more difficult for the developer, the suits are claiming the development's investors Eamon Roche, Eric Gray and Joshua Sacks, all affiliated with Broad Channel, have personal guarantees on the loans.

    An attorney for Terra Capital declined to comment, as did Midfirst. The developer and investors did not respond to a request for comment.

    And while Midfirst is suing to foreclose and then go after the personal guarantees for any losses, Terra Capital is foregoing a foreclosure and suing for breach of contract only, seeking the $3.1 million plus $877,542 in interest and fees.

    Although work is mostly completed, the building does not yet have a certificate of occupancy, according to the city Department of Buildings' Web site. The units were listed for prices as high as $1,369 per square foot for a one-bedroom, but no units are currently listed, Streeteasy.com shows. Citi Habitats Marketing Group was marketing the building, but did not return telephone calls for comments.

    In addition, there are 25 mechanic's liens with a total claim of $1.3 million in unpaid contractor bills filed between February and July against the property, records filed with the New York County Clerk show.

    Experts said they were seeing more mezzanine lenders suing under contract breaches for personal guarantees instead of foreclosing as the value of real estate has dropped, giving the loans little or no value.

    "I expect that as property levels decline you will see more. Where the subordinate debt position is reduced or the value is eliminated, the only alternative is to chase the guarantors," real estate attorney Kevin O'Shea, managing partner of law firm Allen & Overy, said. He was not involved with the litigation.

    One prospective condo buyer at the building, Massey Knakal Realty Services first vice president of sales Brock Emmetsberger, toured the building earlier this year and said it was mostly completed. He was not involved in the project, but had been considering a purchase for himself.

    One popular way out of slow condo sales is to convert a building to a rental, but Emmetsberger expected it would be difficult for the developer because of the costs to create the luxury units.

    "I assume with the combination of the price of the land and the construction costs, I am not sure rents would be high enough to carry the debt," he said.

  4. #4
    Disgruntled Optimist lofter1's Avatar
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    There was a little back and forth in another thread about this one a few weeks ago.

    Indications then were that there was trouble in the air. I walked by the CH last week and noticed that there'd been zero progress on the PH and that the plants in the window boxes were deader than ever. Sad, especially given that it's a nice property and well done.

    It must be a nightmare to be a small developer in this economic climate.

  5. #5
    NYC Aficionado from Oz Merry's Avatar
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    Chelsea's Carriage House Springs Back to Life on 24th Street

    March 10, 2011, by Pete Davies




    New life on West 24th in Chelsea.


    Not quite ready for cars.

    Chelsea's Carriage House, a nearly completed conversion of an old horse stable into a stack of 24 condos at 159 West 24th Street, found itself stalled back in 2009 when the economy hit the skids. But now it's showing signs of life. New permits plaster the plywood out front and a battalion of workers is busy inside the bricks. Previously filed paperwork at the Department of Buildings to "convert existing building to residential use" was recently re-activated by architect Michael Schmitt. Additional filings covering sprinkler modifications, structural work and boiler installation have also been updated. And to help keep this horse fed, some much needed cash has been added to the mix.

    Just after the Carriage House added another floor and penthouse (and roses) back in 2008, the horse left the stable. There were defaults, threats of foreclosure and lawsuits. The building's website, still flying on a banner among the flower boxes above West 24th, has gone into cyber limbo and StreetEasy, where previous pricing ranged from $690,000 to $1,350,000, shows no active listings. But the mortgagor and mortagee kissed and made up in January, and developer Broad Mill Development Group obtained an additional $306,000 to get things moving once again. With spring on the way and buyers on the march, will designer Gustavo Martinez soon have the insides prettied up and ready to return to market?

    159 West 24th Street [NYC Department of Buildings]
    Carriage House Chelsea coverage [Curbed]

    http://ny.curbed.com/archives/2011/0...treet.php#more

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