Ziel Feldman and his firm, HFZ Capital, settled a dispute involving the sales gallery for its XI condominium project Thursday.
Greenway Mews Realty, the owner of 25-27 Little West 12th Street, in which the sales gallery is located, filed the lawsuit Monday against HFZ for not vacating the property or paying rent after the three-year lease expired in June.
With the lawsuit, the landlord sought to take back the space and collect $1.1 million to cover back rent, expenses to restore the property, and legal fees.
On Thursday afternoon, however, Greenway Mews’ lawyer Steven Sperber notified the court to discontinue the lawsuit as HFZ has agreed to a lease extension, according to email communications between lawyers for both sides that HFZ shared with The Real Deal .
“We look forward to your client’s continued tenancy at the building,” Sperber wrote in an email to Marc Becker, an attorney for HFZ.
150k a month rent for a sales gallery? How large is it?
From RealDeal -
HFZ Capital Group has long been quiet about sales at the XI, its High Line-adjacent condominium.
But a new amendment to the condo offering plan has offered rare insight into the number of contracts signed at the project’s twisting towers since sales launched in 2018.
According to the amendment, which was filed with the attorney general’s office and made public this week, 38 units have gone into contract as of this April. That represents 16 percent of the total 236 condos.
The milestone, which was previously reported by The Real Deal but has now been put in writing by the developer, means the offering plan is “effective” and buyers can begin to close their deals.
HFZ Capital did not respond to a request for comment.
The developer has been under pressure of late. Last week, TRD reported that junior mezzanine positions on four of HFZ’s New York condo projects — not including the XI — are being marketed through a foreclosure sale. Such a sale would afford the bidder “indirect interest” in the properties, according to marketing materials from Newmark Knight Frank.
- Four of HFZ’s condo loans being shopped in foreclosure sale
- HFZ’s the XI has considered wholesale deals
The Bjarke Ingels-designed XI has also faced challenges: It launched sales after the high point of the luxury condo boom, when deals slowed across the high-end market and inventory began piling up. That trend only intensified this year after the state stopped in-person home showings in March, though market interest and activity in Manhattan has begun to slowly pick up again.
HFZ paid $870 million, or roughly $1,100 per square foot, for the site in 2015, making it one of the priciest land deals in New York City history. The project, which will include a hotel, was funded with a $1.25 billion construction loan from the Children’s Investment Fund in 2017.
Units at the building range from a one-bedroom measuring 878 square feet, asking $2.6 million, to a $75 million penthouse with 6,925 square feet of interior space and 4,963 square feet of exterior space, according to the latest amendment. The buyer of another penthouse, priced at $34 million, was identified last year as New Zealand billionaire Graeme Hart.
That does help in explaining why progress in the completion of facade seems slower than is typical; there may be delays in the funding for the construction activities to continue.
Is see now why the title of this thread get the addendum (Xi’s taking forever) - now we know more about why this seems to be taking “forever”.
Photos taken yesterday. There has been little progress on that facade over the last year. Meanwhile, you can see cleaning crews inside the lantern house getting windows, and apartments, ready for occupancy.
XI is just way too big. It should have only been one tower. They’re not enough room in the market for a project this large — even in better economic conditions. I just hope this doesn’t completely stall like 45 Park place or 125 Greenwich
I seem to be the only one who loves this tower.
Nonetheless, I sincerely hope that HFZ fails spectacularly with it and, as a result, is forced to sell the 29th Street development site so that the odious, vile, vertical Gahena doesn’t rise there.
I think XI will go the route of 125 Greenwich; slowed, but not completely stalled - sales there are currently active and seem to be going well enough.
The 45 Park Place project; now that seems like a badly stalled project that may remain empty for years.
I believe XI will finish out in the near future: and sales will commence at a snails pace - and all at deep discounts from the original asking prices.
Now that the exteriors are pretty much completed, I can say that IMO these are unattractive structures in an unfortunately prominent location by the HiLine.
I agree. BIG is really not consistent with his aesthetics. I think he is trying too hard to be innovative on the other hand SMILE in Harlem is a hit IMHO. But then again what do I know.
As much as the rest of us!