One Madison Sponsors Win Retail Space at Auction
Lauren Elkies Schram July 23, 2014, 4:45 p.m.
Related Companies, CIM Group and HFZ Capital have acquired the commercial piece of their One Madison, the condominium at 23 East 22nd Street formerly called One Madison Park.
At a foreclosure auction held this afternoon at the State Supreme Court building at 60 Centre Street, the three companies submitted the winning $3 million bid for the lone commercial unit in the building, which is between Broadway and Park Avenue South. There were no competing bids.
The purchase of the 6,505-square-foot vacant first-floor retail condo, which will close next month, gives the three developers the final piece of a building which they won through a bankruptcy process in 2012. The building was mired in financial and legal troubles after its original owners, Ira Shapiro and Marc Jacobs, ran out of money in 2009. The defendants in the foreclosure auction included 24 East 23rd Commercial LLC, which a source said Messrs. Shapiro and Jacobs were behind, as well as Mr. Shapiro. Mr. Shapiro declined to comment in a phone call following the auction.
The attorney for Related, CIM and HFZ, Rosemary Halligan, a founding partner of Stern Tannenbaum & Bell, noted at the 2 p.m. auction that there was a $11.15 million mortgage owed on the commercial unit, in addition to three other subordinate loans totaling $13.45 million.
Public documents show an initial mortgage of $5 million on the property, provided by Kennedy Funding, and three mortgages totaling $5.4 million provided by a Richard Schoninger. Three mortgages were assigned to a Related-led LLC in 2012.
Only three residential units are available in the CetraRuddy-designed 60-story building, Related previously announced. High-profile residents including media mogul Rupert Murdoch and couple Patriots quarterback Tom Brady and supermodel Gisele Bundchen.
Related declined to comment. Ziel Feldman, founder & managing principal of HFZ, didn’t respond to a request for comment. CIM wasn’t immediately reachable for comment.
Additional reporting provided by Guelda Voien.