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Possible foreclosure for king-size condo development in Manhattan

Bauhouse Group's loans for Sutton Place development expired in January
  • Gamma Real Estate, the lender behind Bauhouse’s latest project located at 3 Sutton Place, is initiating a foreclosure on the planned development.
  • Loans on Sutton 58 expired last month.
  • All-encompassing, the real estate investment firm is looking to get back the $128.8 million it lent to the developer, a debt figure derived from city property records.
  • Local residents and advocacy group East River Fifties Alliance hastily met with the Department of City Planning to place height limits on new buildings before Sutton 58 could begin construction.

3 Sutton Place/Google Maps Bauhouse Group is apparently facing financial trouble amidst community opposition for its latest development. Gamma Real Estate, the lender behind Bauhouse’s latest project located at 3 Sutton Place, is initiating a foreclosure on the planned development, Crain’s New York Business reports. Loans on Sutton 58, the massive condo development that sent neighbors and community members into a frenzy since they laid eyes on brochures of Joseph Beninati’s 80-story skyscrapers, expired last month. According to Gamma’s website, it has advanced $63 million for first mortgage and mezzanine to Bauhouse Group. All-encompassing, the real estate investment firm is looking to get back the $128.8 million it lent to the developer, a debt figure derived from city property records. Bauhouse and attorney Stephen Meister believe the foreclosure is impulsive. “The lender’s flawed and incomplete legal steps to rush the auction are commercially unreasona...