Another time, another lawsuit against HFZ Capital Group and its founder Ziel Feldman.
W Neck REIT’s Great Neck in New York is suing HFZ and Feldman for non-payment of a loan tied to five properties on the Upper East Side.
In February, W Financial REIT provided a $ 43.6 million loan for five properties: 150, 152 and 154 East 79th Street and 1131 and 1135 Lexington Avenue. The creditor claims that Feldman, the managing director of HFZ, was personally liable for the loan.
A lawsuit filed Tuesday in the Nassau District Supreme Court alleges that HFZ first repaid the loan in June and again in the following months. The creditor claims that HFZ has not yet repaid the loan.
In addition to the principal of $ 43.6 million, the creditor seeks to earn interest and other fees. In total, W Financial REIT aims to raise approximately $ 48.6 million.
The acquisition of Upper East Side was probably part of it Assembly build more development.
HFZ bought three properties on 79th Street in March 2020, with two sites on Lexington Avenue in 2017 and 2018. $ 78.75 million for five properties, records show.
Neither W Financial REIT nor its lawyer responded to the request for comment. HFZ also did not respond to a request for comment.
The case adds to a growing list of lawsuits with a New York development company and its founder.
HFZ was once one of the most prolific apartment developers in the city, but he became involved in it liens and litigation. During his trophy project, the development of XI apartments in Chelsea, construction stopped. And sources said earlier The real solution that his creditor, the Children’s Investment Fund, was in negotiations bring a new developer to complete the project.
Feldman, who founded the company in 2005, has guaranteed a number of loans to finance HFZ projects. Many of these loans are now in arrears, so Feldman is personally on the hook to cover the shortcomings.
Meanwhile, Feldman was unloading his personal mansions, including one in the Hamptons, which had been withdrawn $ 50 million.