HFZ Capital Group laid off a number of employees as the developer had financial and legal problems.
Two sources familiar with the matter said the redundancies and levies affected mainly people working in the construction part of the business, as well as those in the company’s headquarters at 600 Madison Avenue.
“Unfortunately, due to the long-term nature of the pandemic and its expected schedule, HFZ has to bypass some of its staff, with the aim of bringing them back,” an HFZ spokesman said in an email. “The other employees have been laid off.”
The developer was under pressure because he had dealt with a lot of litigation from creditors and subcontractors over unpaid loans and unpaid bills associated with several Manhattan apartments.
The redundancies, which are coming before the holiday season and as New Yorkers prepare for the next wave of Covid-19, will affect an estimated 20 to 30 jobs, according to a person with knowledge of the situation. This number could not be independently confirmed by The Real Deal.
The first signs of HFZ’s financial difficulties appeared in September, when a mezzanine lender for four development projects in Manhattan, the CIM Group, hired a brokerage firm. sell positions for closing the UCC auction.
In October, Starwood Property Trust sued HFZ for alleged non-payment of the loan during the cooperative conversion to 344 West 72nd Street.
Then this month the creditor in the planned housing project Upper East Side HFZ claimed that HFZ owes more than $ 18 million in outstanding debt. Ziel Feldman was personally liable for the loans, and his number two, Nir Meir, said the lawsuit.
Last week, Feldman listed his triplex penthouse on the Upper East Side for $ 39 million. The 6,200-square-foot unit stretches across three floors of the Marquand building, which the HFZ converted into apartments in 2013.
HFZ was granted some relief this month when it turned to the court to stop the CIM from continuing the auction to close the UCC, and the judge temporarily detained it.
The HFZ argued that the auction – for home loans at 88 and 90 Lexington Avenue, The Astor at 235 West 75th Street and Fifty Third and Eighth at 301 West 53rd Street – was a komer commercially disproportionate ’and ý predatory attempt to capitalize on the Covid pandemic. 19, ”which would allow CIM to take over the characteristics.
The next trial is scheduled for November 30.
Keith Larsen contributed the news